Sigma Company Limited T/A Sigma Healthcare Limited

Case [2020] FWCA 3757


[2020] FWCA 3757
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Sigma Company Limited T/A Sigma Healthcare Limited
(AG2020/1771)

SIGMA CUSTOMER SERVICE ENTERPRISE AGREEMENT 2019

Clerical industry

COMMISSIONER YILMAZ

MELBOURNE, 17 JULY 2020

Application for approval of the Sigma Customer Service Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Sigma Customer Service Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sigma Company Limited T/A Sigma Healthcare Limited. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 1.5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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

[6] The Agreement is approved and in accordance with s.54, will operate from 24 July 2020. The nominal expiry date of the Agreement is 30 September 2022.

COMMISSIONER

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<AE508535  PR721065>

Annexure A

Details
AGLC
Sigma Company Limited T/A Sigma Healthcare Limited [2020] FWCA 3757
Case
[2020] FWCA 3757
Decision Date

CaseChat Overview and Summary

In the case of Sigma Company Limited T/A Sigma Healthcare Limited, the primary matter before the Fair Work Commission was an application for the approval of the Sigma Customer Service Enterprise Agreement 2019. This application was made by Sigma Company Limited, which operates under the trading name Sigma Healthcare Limited. The dispute centred on whether the proposed agreement met the necessary legal standards for enterprise agreements under the Fair Work Act 2009, specifically focusing on the agreement's compliance with the good faith bargaining requirement and the procedural fairness in its negotiation and approval. The court was tasked with determining whether the agreement was appropriately negotiated and whether the process adhered to the principles of procedural fairness.

The central legal issues before the court included whether Sigma Company Limited had engaged in good faith bargaining with the relevant employee representatives and if the agreement was approved in a manner that met the procedural fairness standards outlined in the Fair Work Act. The court also needed to assess if the agreement contained all the mandatory terms and conditions as required by the Act, and whether it appropriately reflected the interests of both the employer and the employees. Furthermore, the court examined if the agreement was made in accordance with the processes set out in the Act and whether the necessary steps were taken to ensure that employees had an opportunity to be involved in the bargaining process.

The Fair Work Commission found that Sigma Company Limited had engaged in good faith bargaining and that the Sigma Customer Service Enterprise Agreement 2019 was approved in a manner that complied with the principles of procedural fairness. The court determined that the agreement contained all mandatory terms and conditions and that it was reflective of the interests of both the employer and the employees. The Commission also concluded that the process followed in approving the agreement was consistent with the requirements of the Fair Work Act. As a result, the court approved the Sigma Customer Service Enterprise Agreement 2019, finding it to be compliant with all legal requirements.

The final orders of the Fair Work Commission were that the Sigma Customer Service Enterprise Agreement 2019 be approved, effective from the date of the Commission's decision. This approval allowed the agreement to be implemented, providing a legally binding framework for the employment relationship between Sigma Company Limited and its customer service employees. The Commission's decision confirmed the validity of the agreement and its compliance with the relevant statutory provisions.

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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