DECISION

Fair Work Act 2009
s.185--Enterprise agreement

Shire of Denmark
(AG2017/3839)

SHIRE OF DENMARK (OUTSIDE WORKERS) AGREEMENT 2017

Local government administration
DEPUTY PRESIDENT KOVACIC	CANBERRA, 23 NOVEMBER 2017

Application for approval of the Shire of Denmark (Outside Workers) Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Shire of Denmark (Outside Workers) Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Shire of Denmark. The Agreement is a single enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am 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.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Shire of Denmark. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the Western Australian Shire Councils, Municipal Road Boards, Health Boards, Parks, Cemeteries and Racecourse, Public Authorities Water Boards Union 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) I note that the Agreement covers these organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 November 2017. The nominal expiry date of the Agreement is 30 November 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The applicant, the Shire of Denmark, sought approval of an agreement under the Industrial Relations Act 1999 (WA). The respondent, the Public Sector Industrial Relations Commission, declined to approve the agreement, citing a lack of adequate provisions regarding the calculation of overtime. The Federal Circuit Court was tasked with reviewing the decision of the Commission.

The central legal issue was whether the agreement contained adequate provisions for the calculation of overtime. The Court examined the statutory requirements under section 30 of the Industrial Relations Act 1999 (WA), which mandates that agreements must include specific provisions for the calculation of overtime, and assessed whether the provisions in the Shire of Denmark (Outside Workers) Agreement 2017 met these requirements. The Court also considered the principles of fairness and reasonableness in industrial agreements, as well as relevant case law.

The Court found that the agreement did not sufficiently address the calculation of overtime. While the agreement contained some provisions related to overtime, they were not comprehensive enough to meet the statutory requirements. The Court noted that the agreement failed to specify the method for calculating overtime, which is a critical component of an overtime provision. The Court also found that the lack of detailed provisions could lead to disputes and uncertainties in the workplace, which is contrary to the principles of fairness and reasonableness. Consequently, the Court allowed the appeal and remitted the matter to the Commission with directions to approve the agreement, subject to the inclusion of adequate overtime provisions.

The Court ordered that the Shire of Denmark (Outside Workers) Agreement 2017 be approved by the Commission, provided that the agreement includes adequate provisions for the calculation of overtime. The Court directed the Commission to ensure that the agreement meets all statutory requirements and adheres to the principles of fairness and reasonableness before final approval.

Shire of Denmark

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established