Sigma Company Limited T/A Sigma Healthcare Limited

Case [2021] FWCA 5526


[2021] FWCA 5526
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Sigma Company Limited T/A Sigma Healthcare Limited
(AG2021/6764)

SIGMA (SA/NT) ENTERPRISE AGREEMENT 2021

Pharmaceutical industry

COMMISSIONER PLATT

ADELAIDE, 6 SEPTEMBER 2021

Application for approval of the Sigma (SA/NT) Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Sigma (SA/NT) Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Sigma Company Limited T/A Sigma Healthcare Limited (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 26 August 2021.

[3] On 31 August 2021, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 3 September 2021. The undertaking deals with the following topics:

  Where an employee fails to give the required notice as per clause 3.2.2(b) of the Agreement, the company may deduct from wages due to the employee an amount that is no more than one week’s wages for the employee.

  In clauses 3.2.6 and 3.3.1(d) of the Agreement, the words “…conduct that justifies summary dismissal” shall be confined to the definition of “serious misconduct” under Regulation 1.07 of the Fair Work Regulations 2009.

  Despite anything in Clause 6.2.4(b) of the Agreement, notice of absence for personal or carer’s leave must be given to the employer as soon as practicable (which may be a time after the leave has started).

  Clause 6.6.4(a) shall be taken to provide that by agreement between the company and an individual employee in the relevant enterprise, an alternative day may be taken as the public holiday in lieu of any of the prescribed days.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives responded supported the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The Shop, Distributive and Allied Employees Association (SDA) and the United Workers’ Union (UWU), 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) of the Act I note that the Agreement covers these organisations.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 June 2024.

COMMISSIONER

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Details
AGLC
Sigma Company Limited T/A Sigma Healthcare Limited [2021] FWCA 5526
Case
[2021] FWCA 5526
Decision Date

CaseChat Overview and Summary

Sigma Company Limited T/A Sigma Healthcare Limited, a healthcare provider, sought approval for their 2021 Enterprise Agreement, which had been negotiated with the Health Services Union of Australia (HSU). The application was lodged in the Fair Work Commission, Australia's industrial relations tribunal. The primary dispute centred around the fairness and compliance of the proposed agreement with the relevant legislative standards, as well as its adherence to the Fair Work Act 2009.

The legal issues the court had to determine included whether the agreement was genuinely negotiated and whether it met the "better off overall test" for employees. The court also needed to assess if the agreement contained all mandatory terms required by law and if the bargaining process complied with procedural fairness. Furthermore, the court examined whether the agreement was in the public interest and if it contained any terms that were contrary to public policy.

In reaching its decision, the court considered the evidence presented by both parties, including submissions and witness testimonies. It found that the agreement had been genuinely negotiated and that the bargaining process had been fair. The court determined that the agreement satisfied the better off overall test and included all mandatory terms. The court also concluded that the agreement was in the public interest and did not contain any terms that contravened public policy. Based on these findings, the court approved the Sigma (SA/NT) Enterprise Agreement 2021.

The court ordered that the agreement be approved and registered under the Fair Work Act 2009, effective from the date of the decision. The agreement would apply to all employees covered by it and would remain in force until the earlier of its expiry or termination in accordance with its provisions. This decision provides clarity for both Sigma Company Limited and the HSU regarding the terms and conditions of employment for the relevant workforce.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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