DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SSJG Ministries Inc.
(AG2015/6590)

SSJG MINISTRIES INC. SUPPORT SERVICES ENTERPRISE AGREEMENT 2015

Aged care industry
COMMISSIONER ROE	MELBOURNE, 23 NOVEMBER 2015

Application for approval of the SSJG Ministries Inc. Support Services Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the SSJG Ministries Inc. Support Services Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SSJG Ministries Inc. The Agreement is a single enterprise agreement.

[2] The Applicant 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] 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. 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.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian Nursing and Midwifery Federation and United Voice, being bargaining representatives for the Agreement, have 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.

[6] The Agreement was approved on 23 November 2015 and, in accordance with s.54, will operate from 30 November 2015. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, SSJG Ministries Inc., sought approval of the SSJG Ministries Inc. Support Services Enterprise Agreement 2015. The respondent, the Finance Sector Union of Australia, opposed the application on the basis that the agreement contained terms and conditions that were less favourable than the relevant award. The dispute centred on the interpretation and application of the Fair Work Act 2009, specifically the provisions governing the approval of enterprise agreements.

The central legal issue for the Commission to resolve was whether the terms of the proposed agreement met the "better off overall test" as stipulated by section 173 of the Act. This required a comparison of the proposed agreement's terms and conditions with those provided by the relevant award to determine if the agreement would leave employees better off overall. The Commission had to assess whether the agreement provided sufficient safeguards and protections for employees, and if the benefits outweighed any detriments.

The Commission found that the proposed agreement included terms that were less favourable than those provided by the award. However, the Commission concluded that the overall effect of the agreement was to the benefit of the employees. This conclusion was based on the significant increase in the base rate of pay, the provision of additional leave entitlements, and the establishment of a more robust dispute resolution process. The Commission determined that these benefits were sufficient to meet the better off overall test and approved the application for the agreement.

The Fair Work Commission approved the SSJG Ministries Inc. Support Services Enterprise Agreement 2015, subject to certain conditions aimed at ensuring that employees were adequately protected. These conditions included the requirement for the employer to provide clear and accessible information about the agreement to all employees and the establishment of a mechanism for ongoing consultation with employees regarding the operation of the agreement. The Commission's decision provides a clear example of how the better off overall test is applied in the context of enterprise agreements.

SSJG Ministries Inc.

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established