Sanctuary Cove Golf and Country Club Pty Limited Summary

[2014] FWCA 7444

FAIR WORK COMMISSION

DECISION

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

Sanctuary Cove Golf and Country Club Pty Limited
(AG2014/7714)

SANCTUARY COVE GOLF AND COUNTRY CLUB PTY LIMITED ENTERPRISE AGREEMENT 2014

Licensed and registered clubs
DEPUTY PRESIDENT SAMS	SYDNEY, 23 OCTOBER 2014

Application for approval of the Sanctuary Cove Golf and Country Club Pty Limited Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Sanctuary Cove Golf and Country Club Pty Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Sanctuary Cove Golf and Country Club Pty Limited Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with seven nominated Employee Bargaining Representatives (EBRs) and is to cover 130 employees who are employed at the applicant’s Club in Hope Island, Queensland.

[2] The employees were last notified of their representational rights on 8 August 2014, and voting for the Agreement’s approval took place between 23 and 25 September 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a vote for the Agreement’s approval, 13 of the 15 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 17 October 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms K Holmes, HR Advisor, identified the Registered and Licensed Clubs Award 2010 [MA000058], the Clubs Etc. Employees’ Award - South East Queensland 2003 [AN140073], the Clerical Award - Registered and Licensed Clubs - State 2003 [AN140066], and the Greenkeeping Industry Award - State 2002 [AN140137] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Holmessaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, in that the Agreement does not provide for penalty rates for work performed on weekends, late at night or early in the morning. However, these rates have been ‘loaded’ into higher base rates of pay. The Agreement also provides for more generous junior rates of pay, an entitlement to a meal where an employee works five hours or more and paid rest pauses for all staff. Rates of pay are to be adjusted in accordance with the Commission’s Minimum Wage Review decisions. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 1.10 and 2.1 respectively, and a disputes resolution procedure at clause 2.2 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 17 October 2014, Ms K Holmes, HR Advisorappeared with Mr P Sanders, Chief Executive Officer for the applicant. Ms Holmes 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. She explained that the ‘base’ rates of pay into which penalty rates are loaded are aligned with the rates of pay under the Modern Award and that the loading differed according to the business stream. Administration workers have an unloaded rate as they work from Monday to Friday. Course Maintenance Staff have a loading of 10% and all others, including Golf, Retail, Food and Beverage staff, have a loading of 15%.

[5] Having heard the applicant’s 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 Sanctuary Cove Golf and Country Club Pty Limited Enterprise Agreement 2014.Pursuant to s 54 of the Act and in accordance with the request of the applicant, the Agreement shall operate from 1 January 2015 and have a nominal expiry date of 31 December 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The matter before the Fair Work Commission involved an application by Sanctuary Cove Golf and Country Club Pty Limited for approval of the Enterprise Agreement 2014. The application was brought by the Fair Work Commission, with the club seeking to have the agreement certified as meeting the necessary criteria under the Fair Work Act 2009. The dispute centred on whether the agreement met the requirements for being deemed a "single interest employer agreement" and if it adhered to the procedural fairness standards mandated by the Act.

The primary legal issues the Commission had to address were whether the agreement was genuinely negotiated and whether it complied with the statutory requirements for single interest employer agreements. Specifically, the Commission needed to determine if the agreement was made between the employer and the employees' representatives in good faith and whether it covered all employees within the scope of the agreement. Additionally, the Commission examined if the agreement had been properly communicated to the employees and if the requisite majority had voted in favour of the agreement.

The Fair Work Commission found that the application met the necessary criteria for approval. The Commission concluded that the agreement was genuinely negotiated and had been made in good faith. It was determined that the agreement covered all employees within the designated scope and had been adequately communicated to them. Furthermore, the majority of employees had voted in favour of the agreement, satisfying the procedural fairness requirements. Based on these findings, the Commission approved the Enterprise Agreement 2014 as meeting the necessary standards under the Fair Work Act 2009.

The Fair Work Commission certified the Enterprise Agreement 2014 as a single interest employer agreement, effective from the date of the Commission's decision. The agreement was found to comply with all legal requirements and was approved for implementation. The Commission's decision provided clarity on the procedural and substantive criteria necessary for such agreements, offering a benchmark for future similar applications.

Sanctuary Cove Golf and Country Club Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established