DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Shire of Mundaring
(AG2019/3035)

SHIRE OF MUNDARING MUNICIPAL EMPLOYEES COLLECTIVE ENTERPRISE AGREEMENT 2017

Local government administration
COMMISSIONER JOHNS	SYDNEY, 25 SEPTEMBER 2019

Application for approval of the Shire of Mundaring Municipal Employees Collective Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Shire of Mundaring Municipal Employees Collective Enterprise 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 Mundaring. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Australian Municipal, Administrative, Clerical and Services Union 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 October 2019. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Shire of Mundaring applied to the Fair Work Commission for approval of the 2017 Municipal Employees Collective Enterprise Agreement. The applicant sought to include provisions that would enable it to pay employees who were members of the Australian Local Government Association a lower base rate of pay than those who were not members. The applicant contended that this was necessary to ensure that its financial position remained viable.

The legal issues for determination included whether the proposed provisions were in accordance with the Fair Work Act 2009, and if they unfairly discriminated against non-members of the ALGCA. The applicant argued that the proposed provisions were necessary to avoid financial hardship and that there was no unfair discrimination, as the lower rate of pay would only apply to members of the ALGCA if they were also members of another union. The applicant also argued that the proposed provisions did not contravene the principle of equal remuneration for equal work.

The Fair Work Commission held that the proposed provisions were not in accordance with the Fair Work Act. The Commission found that the provisions unfairly discriminated against non-members of the ALGCA, as they would receive a lower base rate of pay than members of the ALGCA who were also members of another union. The Commission held that the provisions did not meet the requirements of the Act, as they did not promote the objects of the Act, including the principle of equal remuneration for equal work. The application for approval of the proposed provisions was dismissed.

The Commission did not make any orders as the application for approval of the proposed provisions was dismissed.

Shire of Mundaring

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established