DECISION

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

S & AD Basheer Nominees Pty Ltd t/as The Strathmore Hotel
(AG2014/10673)

STRATHMORE HOTEL/UNITED VOICE ENTERPRISE AGREEMENT 2014-2018

Hospitality industry
DEPUTY PRESIDENT SAMS	SYDNEY, 22 DECEMBER 2014

Application for approval of the Strathmore Hotel/United Voice Enterprise Agreement 2014-2018.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by S & AD Basheer Nominees Pty Ltd t/as The Strathmore Hotel (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Strathmore Hotel/United Voice Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with United Voice (the ‘Union’) and is to cover 69 employees who are employed at the applicant’s hotel in Adelaide, South Australia.

[2] The employees were last notified of their representational rights on 11 August 2014, and voting for the Agreement’s approval took place between 24 and 29 November 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a vote for the Agreement’s approval, 28 of the 33 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 5 December 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr D Basheer, Hotel Licensee identified the Hospitality Industry (General) Award 2010 [MA000009], the Hotels, Clubs, Etc., Award [AN150066] and the Clerks’ (Clubs, Hotels and Motels) Award 1979 [AN160075]as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Basheersaid that the Agreement does contain some terms that are less beneficial than those under the reference instruments, including reduced penalty rates for casual employees for work performed on Sundays and public holidays. However, the Agreement provides for a number of terms and conditions that are more beneficial than those under the reference instruments, including higher rates of pay, increased casual loading and more generous penalty rates for permanent employees for work performed on Saturdays and Sundays. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 15 and 16 respectively, and a disputes resolution procedure at clause 17 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 15 December 2014, Mr O Webb of the Australian Hotels Associationappeared with Ms R Barnes, General Manager, for the applicant and Ms L Harrison for the Union. The Union had filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that it wishes to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Union is to be covered by the Agreement. Mr O Webb outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. He explained that rates of pay are to be increased by 3.5% on 1 July 2015, 1 July 2016 and 1 July 2017. Ms Harrison supported the submissions of Mr Webb and confirmed that the Agreement met the BOOT.

[5] Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Strathmore Hotel/United Voice Enterprise Agreement 2014-2018.Pursuant to s 54 of the Act, the Agreement shall operate from 22 December 2014 and have a nominal expiry date of 30 June 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The applicants, S & AD Basheer Nominees Pty Ltd trading as The Strathmore Hotel, sought approval of an enterprise agreement with United Voice, the representative of the employees. The dispute was heard by the Fair Work Commission, which has jurisdiction to approve enterprise agreements. The applicants argued that the agreement was appropriate for the unique operational context of the Strathmore Hotel and that it provided a fair and reasonable balance of the parties’ interests.

The primary legal issue before the Commission was whether the enterprise agreement met the statutory criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was free from any prohibited content, fairly and reasonably achieved a balance of the parties’ interests, and was appropriately negotiated. The Commission also needed to consider if the agreement complied with the procedural requirements set out in the Act.

In delivering its decision, the Commission noted that the agreement was free from prohibited content and had been appropriately negotiated. The Commission found that the agreement provided a fair and reasonable balance of the parties’ interests, considering the specific circumstances of the Strathmore Hotel. The Commission was satisfied that the agreement met the statutory criteria for approval, and therefore granted the application for approval of the enterprise agreement.

The Commission ordered that the Strathmore Hotel/United Voice Enterprise Agreement 2014-2018 be approved as a registered agreement under the Fair Work Act 2009. The agreement is to be registered and will have effect from the date of the Commission's decision. The approval of the enterprise agreement allows the Strathmore Hotel and United Voice to implement the terms and conditions outlined in the agreement, providing certainty and stability for both parties moving forward.

S & AD Basheer Nominees Pty Ltd t/as The Strathmore Hotel

DECISION

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