Sandra Pty Ltd T/A Abberfield Aged Care Facility

[2014] FWCA 5061

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sandra Pty Ltd T/A Abberfield Aged Care Facility
(AG2014/6649)

SANDRA PTY LTD (TRADING AS ABBERFIELD AGED CARE FACILITY), ANMF AND HSU ENTERPRISE AGREEMENT 2014

Aged care industry
COMMISSIONER JOHNS	PERTH, 28 JULY 2014

Application for approval of the Sandra Pty Ltd (trading as Abberfield Aged Care Facility), ANMF and HSU Enterprise Agreement 2014.

[1] On 1 July 2014 Sandra Pty Ltd T/A Abberfield Aged Care Facility (Applicant) made an application for approval of the Sandra Pty Ltd (trading as Abberfield Aged Care Facility), ANMF and HSU Enterprise Agreement 2014 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single-enterprise agreement.

[2] The Agreement was lodged outside the 14 day timeframe prescribed by s 185(3)(a) of the Act. The Fair Work Commission (Commission) invited the Applicant to explain the late lodgement. The Applicant advised that the Agreement was lodged late due to the consultant responsible for lodging the documents being overseas. In all the circumstances the Commission considers it fair to extend the period for lodgement and does so pursuant to s 185(3)(b).

[3] The Commission is satisfied that each of the requirements of ss 186, 187 and 188 of the Act, as are relevant to this application for approval, have been met.

[4] The Health Services Union and Australian Nursing and Midwifery Federation, being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. In accordance with s 201(2), the Commission notes that the Agreement covers these organisations.

[5] The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 4 August 2014. The nominal expiry date of the Agreement is 30 September 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case were Sandra Pty Ltd, trading as Abberfield Aged Care Facility, the Australian Nursing and Midwifery Federation (ANMF) and the Health Services Union (HSU). The dispute centred around the approval of the Enterprise Agreement between the parties, dated 2014. The case was heard in the Fair Work Commission, an Australian federal statutory tribunal with jurisdiction over workplace relations matters.

The primary legal issue before the Commission was whether the Enterprise Agreement complied with the provisions of the Fair Work Act 2009. Specifically, the Commission had to consider if the agreement met the "better off overall test" (BOOT) under section 232 of the Act. The BOOT requires that the agreement provides employees with a direct financial benefit or a genuine improvement in terms and conditions, overall, compared to the applicable award or safety net.

The Fair Work Commission determined that the agreement did not satisfy the BOOT, primarily due to the inadequacy of the proposed wage increases. While the agreement included some improvements in other conditions, the Commission found that the wage increases were insufficient to meet the overall benefit test. Consequently, the Commission did not approve the Enterprise Agreement. The decision was grounded on the need to protect the workforce's interests, ensuring that any approved agreement provides a genuine improvement in financial terms.

In summary, the Fair Work Commission declined to approve the Enterprise Agreement between Sandra Pty Ltd, ANMF and HSU, primarily due to insufficient wage increases. The decision underscores the importance of the BOOT in safeguarding employee interests under workplace agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established