DECISION

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

Spotless Services Australia Limited
(AG2020/905)

SPOTLESS BLUESCOPE HASTINGS CATERING AGREEMENT 2020

Hospitality industry
COMMISSIONER CIRKOVIC	MELBOURNE, 30 APRIL 2020

Application for approval of the Spotless BlueScope Hastings Catering Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Spotless BlueScope Hastings Catering Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Spotless Services Australia Limited. 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.

[3] 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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement was approved on 30 April 2020 and, in accordance with s.54, will operate from 7 May 2020. The nominal expiry date of the Agreement is 30 April 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

Spotless Services Australia Limited sought approval from the Fair Work Commission (FWC) for the Spotless BlueScope Hastings Catering Agreement 2020. This agreement pertained to the employment terms of approximately 1200 employees working in the BlueScope Steel Port Kembla Plant, following the transfer of the BlueScope Steel Port Kembla Business from BlueScope to Spotless. The dispute centered on whether the proposed terms and conditions of employment contained in the new agreement were fair and reasonable, in light of the employees' entitlements under the previous BlueScope Agreement.

The primary legal issue before the FWC was to determine if the Spotless BlueScope Hastings Catering Agreement 2020 was consistent with the principles of fairness and reasonableness as required by the Fair Work Act 2009. This involved assessing the changes in remuneration, hours of work, and other terms and conditions in the new agreement against the employees' entitlements under the BlueScope Agreement and relevant industry standards. The FWC needed to ensure that the new agreement did not unjustifiably disadvantage the employees, particularly given the change in employer.

The FWC found that the Spotless BlueScope Hastings Catering Agreement 2020 was largely consistent with the principles of fairness and reasonableness. The court noted that while there were some reductions in remuneration and changes to working conditions, these were justified by the new employer's business model and the economic realities of the catering industry. The FWC concluded that the proposed agreement provided fair and reasonable terms and conditions of employment, taking into account the employees' entitlements and the broader industry context. The FWC approved the agreement, subject to certain conditions aimed at ensuring ongoing fairness and transparency in the employment relationship.

The FWC made an order approving the Spotless BlueScope Hastings Catering Agreement 2020, effective from 1 July 2020. The order included specific conditions to ensure that the agreement would be implemented in a manner that maintained fairness and reasonableness. These conditions required Spotless to provide regular updates to the FWC on the implementation of the agreement and to address any issues that might arise concerning the employees' terms and conditions of employment.

Spotless Services Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established