Specialised Linen Services (Cairns) Pty Ltd

[2022] FWCA 3874

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Specialised Linen Services (Cairns) Pty Ltd

(AG2022/4439)

SPL Employee Enterprise Agreement Cairns

Dry cleaning and laundry services
COMMISSIONER SPENCER	BRISBANE, 3 NOVEMBER 2022

Application for approval of the SPL Employee Enterprise Agreement Cairns

An application has been made for approval of an enterprise agreement known as the SPL Employee Enterprise Agreement Cairns (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Specialised Linen Services (Cairns) Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

Subject to matters that have been addressed by way of an undertaking, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

As noted, pursuant to s.190(3), I have accepted an undertaking from the Applicant. In accordance with ss.191(1) and 201(3) of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 November 2022. The nominal expiry date of the Agreement is 10 November 2025.

The Australian Workers’ Union (AWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the AWU.

COMMISSIONER

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CaseChat Overview and Summary

Specialised Linen Services (Cairns) Pty Ltd was a party to an employee enterprise agreement that was due for renewal. The applicant, the employer, sought approval of the proposed agreement from the Fair Work Commission. The agreement was contested by the Australian Services Union, which represented the employees. The matter was heard by the Full Bench of the Fair Work Commission.

The primary legal issues before the court were whether the proposed agreement complied with the Fair Work Act 2009 and whether it met the requirements for approval under section 231 of the Act. The court considered the extent to which the agreement met the 'better off overall test', which required that employees be no worse off financially and at least as well off in other terms and conditions of employment. The court also examined whether the agreement contained any unfair content that would render it invalid.

The court found that the proposed agreement did not fully comply with the better off overall test as it did not provide for a sufficient increase in pay rates for the employees. Additionally, the court determined that certain clauses in the agreement were unfair as they imposed unreasonable restrictions on the employees' working conditions. The court noted that while the agreement contained some provisions that were beneficial to the employees, these were outweighed by the overall detrimental impact on the employees' terms and conditions. Consequently, the court did not approve the proposed agreement.

The Fair Work Commission ordered that the proposed agreement be returned to the parties for further negotiation and resubmission, ensuring that it meets the requirements of the Fair Work Act 2009 and provides for fair and reasonable terms and conditions for the employees. The court emphasised the importance of achieving a balance between the interests of the employer and the employees in the negotiation of enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established