Southgate Hotel Management Pty Ltd T/A Langham Hotel Melbourne

[2022] FWCA 2414

[2022] FWCA 2414

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Southgate Hotel Management Pty Ltd T/A Langham Hotel Melbourne

(AG2022/2144)

Langham Hotel Melbourne - United Voice Agreement 2015

Hospitality industry
COMMISSIONER O’NEILL	MELBOURNE, 19 JULY 2022

Application for termination of the Langham Hotel Melbourne – United Voice Agreement 2015

1. On 27 June 2022, Langham Hotel Melbourne applied to terminate the Langham Hotel Melbourne – United Voice Agreement 2015 (the Agreement) pursuant to section 225 of the Fair Work Act 2009 (Cth) (the Act).

1. The Agreement has passed its nominal expiry date of 1 October 2018.

Background

1. The Applicant is the sole employer covered by the Agreement. The Agreement covers the Applicant’s employees who are employed in the classifications set out in clause 11 of the Agreement, and who perform work covered by the Hospitality Industry (General) Award 2010 (the Award).

1. The application was supported by a statutory declaration of Jeffrey van Vorsselen, Managing Director, dated 27 June 2022. A further statutory declaration made by Thomas Fitzgerald, Director of Human Resources, was filed on 12 July 2022.

1. The material filed by the Applicant establishes that:

·   There are currently 224 employees covered by the Agreement;

·   On 1 June 2022, employees were sent an email seeking their views on the proposed termination via an online survey. Employees were also provided with a document comparing the key terms of the Agreement and the Award. The results of the survey indicated that out of 111 responses, 98 employees agreed to the proposed termination;

·   On 4, 7 and 8 June 2022, the Applicant hosted information sessions to answer questions regarding the proposed termination. Approximately 40 employees attended these sessions;

·   All employees who are presently covered by the Agreement will be covered by the Award; and

·   The Applicant intends to grandfather the Agreement’s current base rates of pay for existing employees at the time of termination to ensure no employee will receive less pay than they otherwise would under the Agreement.

1. The United Workers’ Union is covered by the Agreement and does not object to the application to terminate the Agreement.

Consideration

1. In relation to s.225 of the Act, I am satisfied that the Applicant is entitled to make this application and that the Agreement has passed its nominal expiry date.

1. In relation to s.226, I am required to terminate the Agreement if (a) I am satisfied that it is not contrary to the public interest to do so, and (b) if I consider it appropriate taking into account all the circumstances including:

(i)the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii)the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

1. In considering the material filed by the Applicant, I am satisfied that it is not contrary to the public interest to terminate the Agreement. As outlined above, the views of the UWU  were sought and it does not object to the termination of the Agreement. On 11 July 2022, a notice was distributed to all employees giving them an opportunity to provide their views to the Commission and none were received.

1. The Applicant is part of a group of hotels, two of which are in Australia and currently apply the Award to their employees. I am satisfied that the effect of terminating the Agreement will be a modernised employment arrangement which will benefit employees, and a simplified set of terms and conditions that will be more efficient for the employer to administer.

1. I am satisfied that the requirements of s.226 of the Act have been met, and in all the circumstances, I consider that it is appropriate to terminate the Agreement.

1. The Agreement is terminated effective from 30 August 2022.

COMMISSIONER

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