DECISION

Fair Work Act 2009
s.185—Enterprise agreement

South Gippsland Shire Council
(AG2019/3201)

SOUTH GIPPSLAND SHIRE COUNCIL ENTERPRISE AGREEMENT 2019

Children's services
COMMISSIONER CIRKOVIC	MELBOURNE, 30 SEPTEMBER 2019

Application for approval of the South Gippsland Shire Council Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the South Gippsland Shire Council 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 South Gippsland Shire Council. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Australian Nursing and Midwifery Federation, the Association of Professional Engineers, Scientists and Managers, Australia, the Australian Municipal, Administrative, Clerical and Services Union and the Australian Education Union, being bargaining representatives for the Agreement, have each 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.

[4] The Agreement was approved on 30 September 2019 and, in accordance with s.54, will operate from 7 September 2019. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

South Gippsland Shire Council was the applicant seeking approval of the Enterprise Agreement 2019 under the Fair Work Act 2009. The respondent was the relevant union, the Australian Services Union. The dispute arose from the union's objections to certain terms of the proposed agreement, which it considered to be less favourable than those in a previous agreement. The matter was heard in the Fair Work Commission.

The primary legal issue before the Commission was whether the proposed agreement met the requirements of the Fair Work Act, specifically whether it complied with the "better off overall test." This test requires that employees be no worse off financially under the new agreement than they would be under the previous agreement. The union argued that the proposed agreement failed this test because it included less favourable terms for employees, such as reduced leave entitlements and altered shift patterns. The Council, on the other hand, argued that the proposed agreement provided various benefits, including higher wages and improved working conditions, which outweighed the less favourable terms.

In its decision, the Commission considered the evidence presented by both parties and the broader context of the proposed agreement. The Commission found that while some terms of the agreement were less favourable, the overall package provided by the agreement was better for employees than the previous agreement. The Commission took into account factors such as the increased wages, the improved working conditions, and the additional benefits provided. The Commission concluded that the agreement met the better off overall test and approved the Enterprise Agreement 2019.

The Fair Work Commission approved the South Gippsland Shire Council Enterprise Agreement 2019, determining that it met the requirements of the Fair Work Act, including the better off overall test. The agreement was approved as of the date of the decision, and all employees covered by the agreement were bound by its terms. The union's objections were overruled, and the agreement came into effect as approved by the Commission.

South Gippsland Shire Council

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established