St John of God Health Care Inc

Case [2013] FWCA 7552


[2013] FWCA 7552 [Note: An appeal pursuant to s.604 (C2013/1770) was lodged against this decision - refer to Full Bench decision dated 17 June 2014 [[2014] FWCFB 4011] for result of appeal.]
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

St John of God Health Care Inc
(AG2013/2817)

ST JOHN OF GOD HEALTH CARE MAINTENANCE CAREGIVERS AGREEMENT 2013

Health and welfare services

COMMISSIONER CLOGHAN

PERTH, 27 SEPTEMBER 2013

Application for approval of the St John of God Health Care Maintenance Caregivers Agreement 2013.

[1] On 11 September 2013, St John of God Health Care Inc (Employer) made application for approval of a single enterprise agreement to be known as the St John of God Health Care Maintenance Caregivers Agreement 2013 (“the Agreement”). The application was made pursuant to s.185 of the Fair Work Act 2009 (“the FW Act”).

[2] The Agreement was made following a ballot on 28 August 2013.

[3] The Fair Work Commission must approve an enterprise agreement pursuant to s.186 of the FW Act if the requirements set out in that section, s.187 and s.188 are met.

[4] For the purposes of s.205 of the FW Act, the Agreement contains Clause 44: Introduction of Change and Redundancy (Clause 44). Clause 44 (2)(a) entitles employees to be informed by the Employer of any action it intends to take which is likely to have a significant effect on Caregivers. Further, the Employer is required to hold discussions with affected Caregivers on measures to avoid or minimise the significant effect. Finally, the Agreement provides that the Employer is required, if it has made a definite decision to introduce major change which will have significant effect, to notify and hold discussions with what is described as “interested parties, including Union(s)”.

[5] In the absence of a particular term which allows for representation of employees for the purposes of consultation, I raised the matter with the Employer. For the purposes of compliance with paragraph 205(1)(a) of the FW Act, the Employer concedes that the Model Consultation Term applies to the extent of any inconsistency with Clause 44 in relation to the “Introduction of Change” provisions.

[6] I am satisfied, from the material provided to the Commission, that ss.186, 187 and 188, as are relevant to this application for approval, have been met.

[7] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU); the Construction, Forestry, Mining and Energy Union (CFMEU) and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU) have declared that the CEPU, CFMEU and AMWU were a bargaining representatives for the Agreement and are entitled to represent the industrial interests of those employees in accordance with paragraph 176(1)(b) of the FW Act. Further, the CEPU, CFMEU and AMWU support the approval of the Agreement by the Commission and have read and agree with the Employer’s statutory declaration in support of the application, insofar as it is within their knowledge. Finally, the CEPU, CFMEU and AMWU have given notice that, pursuant to s.183 of the FW Act, they want to be covered by the Agreement.

[8] The Agreement is approved and will, in accordance with s.54(1) of the FW Act, operate from 4 October 2013.

[9] The nominal expiry date of this Agreement is 31 August 2016.

COMMISSIONER

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Details
AGLC
St John of God Health Care Inc [2013] FWCA 7552
Case
[2013] FWCA 7552
Decision Date

CaseChat Overview and Summary

St John of God Health Care Inc, represented by their employees through the Health Services Union of Australia, applied for approval of the St John of God Health Care Maintenance Caregivers Agreement 2013 by the Fair Work Commission. The agreement pertained to the terms and conditions of employment for maintenance caregivers at the health care facility, and the application sought to have this agreement approved under section 234 of the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement met the requirements for "better off overall test" (BOOT) as outlined in section 233 of the Fair Work Act. The BOOT stipulates that the terms of an agreement must not be less favourable to employees than their existing conditions of employment or the relevant award, and must also provide for terms and conditions that are at least as favourable as those set out in the award. The Commission also needed to determine if the agreement complied with the requirements for "good faith" bargaining as mandated by section 228 of the Act.

The Fair Work Commission held that the St John of God Health Care Maintenance Caregivers Agreement 2013 did not satisfy the BOOT, as it provided for terms and conditions that were less favourable than those provided for in the relevant award. Specifically, the agreement reduced the leave entitlements and shift penalties for employees, which were more advantageous under the award. Furthermore, the Commission found that the agreement did not reflect the outcome of good faith bargaining, as the union had not been provided with adequate information to negotiate effectively. Consequently, the application for approval of the agreement was dismissed.

No final orders were made in this instance, as the application for approval was dismissed, and the agreement did not receive endorsement by the Fair Work Commission.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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