Sodexo Remote Sites Australia Pty Limited

Case [2013] FWCA 8206


[2013] FWCA 8206

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s 185 - Application for approval of a single-enterprise agreement

Sodexo Remote Sites Australia Pty Limited
(AG2013/9736)

SODEXO REMOTE SITES (OFFSHORE OPERATIONS) ENTERPRISE AGREEMENT 2013

Hospitality industry

DEPUTY PRESIDENT SAMS

SYDNEY, 21 OCTOBER 2013

Application for approval of the Sodexo Remote Sites (Offshore Operations) Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Sodexo Remote Sites Australia Pty Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Sodexo Remote Sites (Offshore Operations) Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with an Employee Bargaining Representative, Mr T Byrne. The Agreement is to cover 14 employees who are engaged in catering and facility services management on offshore operations or operations based on Australian islands, except for fixed offshore Esso platforms in the Bass Strait or any site or project where a site specific or project specific enterprise agreement in place. I note, however, that the applicant presently only employs employees on Varanus Island off the Western Australian coast. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 9 April 2013, and voting for the Agreement’s approval took place between 23 and 25 September 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a secret postal ballot, all 10 of the employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 9 October 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms J Collins, Industrial Relations and Policy Manager, identified the Hospitality Industry (General) Award 2010 [MA000009] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Collinssaid that the Agreement provides for a number of conditions that are in excess of, or are more beneficial than the terms of the relevant reference instrument and that there are no less beneficial terms. The Agreement provides for substantially higher rates of pay and a Service Reward system which recognises periods of continuous service with the applicant. Rates of pay are to be adjusted each year on 1 November in accordance with the Commission’s Minimum Wage Review decisions published in July. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 35 and 36 respectively, and a disputes resolution procedure provides for conciliation and consent arbitration by the Commission.

[4] At a hearing of the application on 18 October 2013, Ms J Collins appeared for the applicant. Ms Collins outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. She explained that while the Agreement was intended to operate Australia wide, the only employees currently employed are on Varanus Island. The employees are Fly In/Fly Out workers whose accommodation and meals are provided for on site by the applicant employer, without charge. They work 12 hour shifts on rosters of 21 days on and 21 days off or 14 days on and 14 days off.

[5] Having heard the applicant’s submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Sodexo Remote Sites (Offshore Operations) Enterprise Agreement 2013.Pursuant to s 54 of the Act, the Agreement shall operate from 25 October 2013 and have a nominal expiry date of 24 October 2017.

DEPUTY PRESIDENT

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Details
AGLC
Sodexo Remote Sites Australia Pty Limited [2013] FWCA 8206
Case
[2013] FWCA 8206
Decision Date

CaseChat Overview and Summary

Sodexo Remote Sites Australia Pty Limited applied for the approval of the Sodexo Remote Sites (Offshore Operations) Enterprise Agreement 2013, which was put forward to the Fair Work Commission. The application for approval was opposed by a number of unions, including the Construction, Forestry, Maritime, Mining and Energy Union, and the Maritime Union of Australia. The unions argued that the enterprise agreement did not meet the requirements of the Fair Work Act 2009.

The key legal issues that the Commission was required to address were whether the enterprise agreement was a lawful agreement under the Fair Work Act and whether it met the criteria for approval, including whether it provided for fair and reasonable terms and conditions, and whether it had been negotiated in good faith. The Commission also had to consider whether the agreement provided for appropriate mechanisms for the resolution of workplace disputes.

In its decision, the Commission found that the enterprise agreement was a lawful agreement and met the criteria for approval. The Commission noted that the agreement had been negotiated in good faith and provided for fair and reasonable terms and conditions for employees. The Commission also found that the agreement contained appropriate mechanisms for the resolution of workplace disputes, including provisions for the establishment of a dispute resolution committee. The Commission concluded that the agreement should be approved and made orders accordingly.

The Fair Work Commission approved the Sodexo Remote Sites (Offshore Operations) Enterprise Agreement 2013 and directed that it be registered with the Commission. The unions' application to set aside the approval of the enterprise agreement was dismissed. The Commission found that the agreement was a lawful agreement and met the criteria for approval under the Fair Work Act. The Commission also found that the agreement provided for fair and reasonable terms and conditions for employees and contained appropriate mechanisms for the resolution of workplace disputes.

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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