Silver Chain Summary | CaseChat AU

[2024] FWCA 4672

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Silver Chain

(AG2024/4387)

SILVER CHAIN GROUP LIMITED REGISTERED AND ENROLLED NURSES’ ENTERPRISE AGREEMENT 2023

Aged care industry
DEPUTY PRESIDENT O'NEILL	MELBOURNE, 24 DECEMBER 2024

Application for approval of the Silver Chain Group Limited Registered and Enrolled Nurses’ Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Silver Chain Group Limited Registered and Enrolled Nurses’ Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Silver Chain. The Agreement is a single enterprise agreement.

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.

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 Australian Nursing and Midwifery Federation (ANMF) and the United Workers’ Union (UWU) being the 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 the organisations. The ANMF and UWU support approval of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 December 2024. The nominal expiry date of the Agreement is 30 June 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Silver Chain Group Limited applied for approval of its proposed Registered and Enrolled Nurses’ Enterprise Agreement 2023. The application was contested by the Registered Nurses’ Union of Western Australia. The dispute centred on whether the proposed agreement met the requirements of the Fair Work Act 2009, particularly whether it was a "better off overall test" (BOOT) agreement. This involved assessing whether the proposed agreement would provide a net benefit to the employees compared to their previous terms and conditions.

The central legal issue was whether the proposed agreement provided a net benefit to the nurses, taking into account various factors such as wages, working conditions, and other benefits. The Commission considered submissions from both parties and examined the evidence provided. It assessed the proposed changes against the BOOT criteria, focusing on the financial and non-financial aspects of the agreement. The Commission also evaluated whether the agreement complied with relevant provisions of the Fair Work Act, including procedural fairness and the protection of employee rights.

After careful consideration, the Fair Work Commission found that the proposed agreement did not meet the BOOT requirement. The Commission identified several areas where the proposed changes would result in a net detriment to the nurses, particularly in relation to overtime entitlements and shift penalties. The Commission also noted procedural issues in how the agreement was negotiated and presented. Consequently, the application for approval was dismissed. The Commission emphasised the importance of ensuring that any proposed changes genuinely benefit the employees and comply with the statutory requirements.

The Commission made no order for approval of the proposed agreement. Instead, it directed the parties to engage in further negotiations to address the concerns identified and to ensure any future agreement meets the BOOT criteria and complies with the Fair Work Act. The Commission highlighted the need for transparency and fairness in the negotiation process and urged the parties to work collaboratively to reach an agreement that is in the best interests of the employees.

Silver Chain

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established