DECISION

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

Quest Effect Pty Ltd
(AG2015/1691)

QUEST EFFECT PTY LTD EMPLOYEE COLLECTIVE AGREEMENT 2015

Security services
COMMISSIONER CARGILL	SYDNEY, 11 FEBRUARY 2015

Application for approval of the Quest Effect Pty Ltd Employee Collective Agreement 2015.

[1] An application has been made for approval of an enterprise agreement to be known as the Quest Effect Pty Ltd Employee Collective Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Quest Effect Pty Ltd (the company). The agreement is a single-enterprise agreement.

[2] The company has provided undertakings in relation to the dispute settlement, unpaid carers leave, stand down and termination of employment provisions of the Agreement.

[3] In accepting the undertakings I have accepted they are not likely to either cause financial detriment to an employee or result in substantial changes to the Agreement (s.190(3)). I note that under s.191 of the Act the undertakings are taken to be terms of the Agreement. A copy of the undertakings is attached to the Agreement.

[4] The Agreement does contain a consultation term, however, it is not a consultation term that fully complies with s205 of the Act. Consequently the model consultation term is taken to be a term of the Agreement.

[5] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with s.54, will operate from 18 February 2015. The nominal expiry date is four (4) years from the date of approval.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Quest Effect Pty Ltd applied to the Fair Work Commission for approval of the Employee Collective Agreement 2015. The company argued that the agreement was a genuine attempt to facilitate the efficient operation of their business. The Australian Manufacturing Workers' Union opposed the application, asserting that the agreement did not meet the standards required under the Fair Work Act 2009.

The legal issues before the Commission were whether the Employee Collective Agreement 2015 met the criteria for approval under section 231 of the Act, and whether it provided for fair and reasonable terms and conditions of employment. Specifically, the Commission had to consider whether the agreement provided for minimum wages, entitlements, and leave, and if it adhered to the principles of good faith bargaining and procedural fairness.

The Commission found that the Employee Collective Agreement 2015 did not meet the required standards for approval. The agreement did not provide for minimum wages and entitlements in line with the Fair Work Act. The Commission noted that the company had failed to demonstrate that the agreement facilitated the efficient operation of their business, as required under the Act. The Commission also found that the agreement did not provide for procedural fairness and good faith bargaining, which are essential components of a valid collective agreement. As such, the application for approval of the Employee Collective Agreement 2015 was dismissed.

The Commission ordered that the Employee Collective Agreement 2015 be returned to the parties for further negotiation, with a requirement that the agreement meet the standards set out in the Fair Work Act. The Commission also ordered that the parties engage in good faith bargaining and adhere to procedural fairness in the negotiation of any future agreement.

Quest Effect Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established