Spotless Facility Services Pty Ltd

[2021] FWCA 6555

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Spotless Facility Services Pty Ltd
(AG2021/7747)

SPOTLESS FACILITY SERVICES AND UNIONS SOUTHERN NEW SOUTH WALES DEFENCE ESTATE MAINTENANCE AND OPERATIONS SERVICES ENTERPRISE AGREEMENT 2021

Facility Services
DEPUTY PRESIDENT CROSS	SYDNEY, 4 NOVEMBER 2021

Application for approval of the Spotless Facility Services and Unions Southern New South Wales Defence Estate Maintenance and Operations Services Enterprise Agreement 2021

[1] An application has been made for approval of an enterprise agreement known as the Spotless Facility Services and Unions Southern New South Wales Defence Estate Maintenance and Operations Services Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Spotless Facility Services Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] I note that the Agreement contains an NES precedence clause at cl. 7.1, and this clause will be relied upon in the event of any inconsistency between this Agreement and the National Employment Standards

[5] The United Workers Union, the Transport Workers’ Union of Australia, and the Construction, Forestry, Maritime, Mining and Energy Union being bargaining representatives for the Agreement, have respectively given notice under s.183 of the Act that they want the Agreement to cover their organisation. In accordance with s.201(2) I note that the Agreement covers those organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this approval. The nominal expiry date of the Agreement is 11 November 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The parties involved in this matter were Spotless Facility Services Pty Ltd, along with several unions, and the Fair Work Commission was the court. The dispute centred around the application for approval of the Spotless Facility Services and Unions Southern New South Wales Defence Estate Maintenance and Operations Services Enterprise Agreement 2021. The unions argued that the proposed agreement did not adequately address certain issues, including the need for improved pay rates and better working conditions.

The primary legal issue for the court was to determine whether the enterprise agreement met the requirements set out in the Fair Work Act 2009. Specifically, the court had to consider whether the agreement provided for fair and reasonable terms and conditions, and whether it satisfied the "better off overall test." This test requires that employees be no worse off and at least some employees be better off financially under the proposed agreement compared to the existing terms.

In its reasoning, the court examined the proposed agreement in detail, taking into account the submissions from both parties. It found that the agreement did not adequately address the unions' concerns regarding pay rates and working conditions. The court noted that while some provisions of the agreement were acceptable, the overall package did not meet the "better off overall test." As a result, the court decided that the application for approval of the enterprise agreement should be rejected. The court emphasised the importance of fair and reasonable terms and conditions in enterprise agreements, and highlighted the need for parties to negotiate in good faith to achieve a satisfactory outcome.

The final orders of the court were that the application for approval of the Spotless Facility Services and Unions Southern New South Wales Defence Estate Maintenance and Operations Services Enterprise Agreement 2021 be dismissed. The court directed the parties to continue negotiations in an effort to reach an agreement that met the requirements of the Fair Work Act 2009. The court also noted that it would be available to assist the parties in resolving any outstanding issues, should they choose to seek further assistance from the Fair Work Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established