Sleeper Pty Ltd T/A Oporto Melbourne Central

Case [2024] FWCFB 149


[2024] FWCFB 149 Note: A copy of the zombie agreement to which this decision relates (AG838501) is available on our website.]

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

Sleeper Pty Ltd T/A Oporto Melbourne Central

(AG2023/4757)

Fast food industry

DEPUTY PRESIDENT SLEVIN
DEPUTY PRESIDENT GRAYSON
COMMISSIONER THORNTON

SYDNEY, 15 MARCH 2024

Application to extend the default period for the Sleeper Pty Limited - Certified Agreement 2004 - 2007

  1. Pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the Act), Sleeper Pty Ltd T/A Oporto Melbourne Central (Applicant) has applied to extend the default period for the Sleeper Pty Limited - Certified Agreement 2004 – 2007 (the Agreement).

  1. The application is made in accordance with subitem 20A(6)(a) on the ground that bargaining is occurring for a proposed enterprise agreement that will cover the same or substantially the same group of employees as covered by the Agreement and that it is appropriate to do so. The application was made after the notification time for the proposed enterprise agreement.

  1. The Full Bench in ISS Health Service Pty Ltd[1] described the requirements that must be met for an application to extend the default period where bargaining for a replacement agreement is made.

  1. We are satisfied on the material provided that the requirements in subitem (6)(a) are met and that it is appropriate to extend the default period. The applicant has commenced bargaining for a replacement agreement. The Notice of Employee Representational Rights was issued on 2 November 2023. Information sessions with employees were conducted on 22 and 23 November 2023 and two employees have been elected as bargaining representatives.

  1. The applicant contends that an extension to 1 December 2024 would allow for the finalisation of an agreement.

  1. The workforce covered by the agreement and any replacement agreement is small and negotiations should not be onerous. The time suggested in the application to extend the Agreement for a further 12 months is excessive. We do not consider, taking into account the steps taken in the bargaining to date and the size of the workforce, that a new agreement will take the 12 months sought by the Applicant.

  1. In considering whether to extend the agreement and the length of the extension to be granted, we have also taken into account that some conditions in the agreement are less beneficial than the Fast Food Industry Award 2020, including the payment of ‘loaded’ hourly rates, excluding weekend and public holiday penalty rates, uniform allowances and annual leave loading.

  1. We have balanced that consideration with the information and submissions filed by the applicant to the effect that bargaining has been commenced and progress has been made in the bargaining. We consider that an extension until 6 June 2024 is sufficient time for a replacement agreement to be made and approved.

  1. Pursuant to item 20A(6) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth), we order that the default period for the Agreement is extended until 6 June 2024.

  1. The Agreement is published, in accordance with subitem 20A(10A)(c) of the Act, on the Fair Work Commission website.

DEPUTY PRESIDENT


[1] [2023] FWCFB 122 at [4].

Printed by authority of the Commonwealth Government Printer

<AG838501  PR772382>

Details
AGLC
Sleeper Pty Ltd T/A Oporto Melbourne Central [2024] FWCFB 149
Case
[2024] FWCFB 149
Decision Date

CaseChat Overview and Summary

Sleeper Pty Ltd, trading as Oporto Melbourne Central, applied to the Fair Work Commission for an extension to the default period of their existing enterprise agreement, the Sleeper Pty Limited - Certified Agreement 2004 – 2007. The company sought an extension on the basis that bargaining for a new enterprise agreement was underway and would cover the same or substantially the same group of employees as the existing agreement. The legal issue before the Full Bench was whether the requirements for an extension under subitem 20A(6)(a) of Schedule 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 had been met, and if so, what period of extension was appropriate.

The Full Bench considered the evidence provided by Sleeper Pty Ltd, which demonstrated that bargaining had commenced with the issuing of a Notice of Employee Representational Rights on 2 November 2023, and that information sessions had been held with employees on 22 and 23 November 2023. Two employees had been elected as bargaining representatives. Despite this, the Bench found that the proposed extension of 12 months to 1 December 2024 was excessive given the small size of the workforce and the progress already made in negotiations. The Full Bench also noted that some conditions in the existing agreement were less beneficial than the Fast Food Industry Award 2020. Taking all these factors into account, the Full Bench determined that an extension until 6 June 2024 would provide sufficient time for a new agreement to be finalised and approved.

The Full Bench ordered, under item 20A(6) of Schedule 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009, that the default period for the Sleeper Pty Limited - Certified Agreement 2004 – 2007 be extended until 6 June 2024. The agreement is published on the Fair Work Commission website in compliance with subitem 20A(10A)(c) of the Act.

Orders

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Background

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