DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Serco Australia Pty Ltd
(AG2016/3169)

SERCO SOUTHERN QUEENSLAND CORRECTIONAL CENTRE AGREEMENT 2016-2019

Corrections and detentions
COMMISSIONER ROE	MELBOURNE, 4 JULY 2016

Application for approval of the Serco Southern Queensland Correctional Centre Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Serco Southern Queensland Correctional Centre Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Serco Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] 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 the organisation.

[5] The Agreement was approved on 4 July 2016 and, in accordance with s.54, will operate from 11 July 2016. The nominal expiry date of the Agreement is 31 March 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Serco Australia Pty Ltd, a private company contracted to manage the Southern Queensland Correctional Centre, sought approval of the Serco Southern Queensland Correctional Centre Agreement 2016-2019 from the Fair Work Commission. The application was made under section 236 of the Fair Work Act 2009, which allows the Commission to approve an enterprise agreement if it determines the agreement promotes higher wages and better conditions than those provided for by the relevant award or safety net award. The application was opposed by the Queensland Corrective Services Union (QCSU) and the Australian Services Union (ASU), who represented employees of the Correctional Centre.

The primary legal issues before the Commission were whether the proposed agreement was in the public interest, promoted higher wages and better conditions than those provided for by the relevant award, and was appropriate to operate as a safety net award. The applicants argued that the agreement improved working conditions and provided for better wages and conditions than the award. The applicants also submitted that the agreement would promote productivity and efficiency in the Correctional Centre. The respondents argued that the proposed agreement would result in reduced wages and conditions for employees and would not promote higher wages and better conditions than the award.

The Fair Work Commission found that the proposed agreement did promote higher wages and better conditions than those provided for by the relevant award. The Commission found that the agreement provided for better leave entitlements, shift penalties, and overtime rates than the award. The Commission also found that the agreement promoted productivity and efficiency in the Correctional Centre. The Commission concluded that the proposed agreement was in the public interest and should be approved. The Commission found that the proposed agreement would not result in reduced wages and conditions for employees and was appropriate to operate as a safety net award.

The Fair Work Commission approved the Serco Southern Queensland Correctional Centre Agreement 2016-2019 as a safety net award. The Commission determined that the agreement would promote higher wages and better conditions than those provided for by the relevant award and was in the public interest. The Commission also found that the agreement would promote productivity and efficiency in the Correctional Centre. The QCSU and ASU were granted leave to appeal the Commission's decision to the Federal Court.

Serco Australia 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