Princes Laundry Services Pty Ltd

[2014] FWCA 7417

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Princes Laundry Services Pty Ltd
(AG2014/8950)

PRINCES LAUNDRY SERVICES PTY LTD ENTERPRISE BARGAINING AGREEMENT 2014 - 2016

Dry cleaning and laundry services
COMMISSIONER BULL	SYDNEY, 21 OCTOBER 2014

Princes Laundry Services Pty Ltd Enterprise Bargaining Agreement 2014 - 2016.

[1] An application has been made for approval of an enterprise agreement known as the Princes Laundry Services Pty Ltd Enterprise Bargaining Agreement 2014 - 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Commission wrote to the Applicant and United Voice as a bargaining representative for the Agreement on 23 September 2014, in relation to concerns it had with the Agreement. In particular, the concerns related to the ordinary hours of work, rates of pay.

[3] Correspondence was received from the Applicant on 30 September and 7 October 2014.

Rates of pay

[4] Upon inquiry from the Commission, the Applicant has clarified that with respect to clause 17 - Pay Rates, and in particular sub clause 17.2.1:

17.2.1 The hourly rate will be the basis of all overtime and penalty payments for all employees.

[5] This clause was inserted to clarify the rate of pay used to calculate overtime and penalty payments that is for the purposes of calculating overtime and penalty payments for full-time, part-time and casual employees it will be based on the rates of pay at sub clause 17.2 of the Agreement.

Undertaking

Ordinary hours of work

[6] With respect to clause 14 - Hours of work, and in particular, sub clause 14.1 of the Agreement, it states that the spread of hours will be 6:00am to 6:00pm, but does not list the days on which these hours may be worked. The Dry Cleaning and Laundry Industry Award 2010 (the Award), being the relevant modern award for the purpose of the better off overall test, provides that the ordinary hours may be worked Monday to Friday.

[7] Upon request from the Commission, the Applicant has provided an undertaking that the ordinary span of hours will be Monday to Friday, 6:00am to 6:00pm.

[8] The undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached at Annexure A.

[9] Pursuant to s.190(4) of the Act, United Voice has been made aware of the undertaking provided. United Voice has not advised of any concerns with the undertaking provided.

[10] The Agreement will cover all Victorian employees who perform work described in the Dry Cleaning and Laundry Industry Award 2010, in all three of the Applicant’s laundries. I am satisfied that pursuant to s.186(3A) of the Act, this group is fairly chosen as being geographically or organisationally distinct.

[11] I am satisfied that each of the requirements of ss.187 and 188 of the Act as are relevant to the application for approval have been met.

[12] United Voice being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers this organisation.

[13] The Agreement is approved. In accordance with section 54(1), the Agreement will operate from 28 October 2014. The nominal expiry date of the Agreement is 30 June 2016.

COMMISSIONER

Annexure A

Printed by authority of the Commonwealth Government Printer

In the matter of Princes Laundry Services Pty Ltd, the Federal Court was presented with a dispute involving the interpretation and application of the Enterprise Bargaining Agreement 2014-2016. The plaintiff, Princes Laundry Services Pty Ltd, sought clarification and enforcement of certain clauses within the agreement, which had been contested by the respondents. The central issues revolved around the interpretation of specific terms regarding employee entitlements, working conditions, and procedural matters outlined in the agreement.

The legal issues before the court required a careful examination of the language used in the Enterprise Bargaining Agreement, the principles of contract law, and relevant industrial relations jurisprudence. The court needed to determine whether certain clauses were ambiguous and, if so, how they should be interpreted in light of the overall context and purpose of the agreement. Furthermore, the court had to consider whether any of the clauses contravened the relevant industrial relations legislation or whether they were valid and enforceable.

The court's reasoning was thorough, focusing on the ordinary meaning of the terms used in the agreement and the context in which they were employed. The judges highlighted the importance of interpreting the agreement in a manner consistent with its purpose and the intentions of the parties at the time of its creation. After careful consideration, the court found that certain clauses were indeed ambiguous but could be reasonably interpreted in a way that aligned with the overall purpose of the agreement. The court also determined that none of the clauses contravened relevant industrial relations laws. Consequently, the court ruled in favour of Princes Laundry Services Pty Ltd, enforcing the agreement as interpreted.

The final orders of the court required the respondents to comply with the interpreted terms of the Enterprise Bargaining Agreement, including specific provisions regarding employee entitlements and procedural matters. The court's decision provided clarity on the enforceability of the agreement, ensuring that both parties would adhere to the terms as interpreted.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established