St Laurence Community Services Inc.

[2013] FWCA 3407

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

St Laurence Community Services Inc.
(AG2013/6334)

ST LAURENCE AGED CARE ENTERPRISE AGREEMENT - 2012-2014

Aged care industry
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 29 MAY 2013

Application for approval of the St Laurence Aged Care Enterprise Agreement - 2012-2014.

[1] An application has been made for approval of an enterprise agreement known as the

St Laurence Aged Care Enterprise Agreement - 2012-2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by

St Laurence Community Services 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.

[4] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[5] The Australian Nursing Federation, 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 organisation.

[6] The Health Services Union, 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 organisation.

[7] The Agreement was approved on 29 May 2013 and, in accordance with s.54, will operate from 5 June 2013. The nominal expiry date of the Agreement is 30 June 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The case involved St Laurence Community Services Inc., an organisation providing aged care services, and its employees who were part of the Australian Services Union. The dispute centred around the application for approval of the St Laurence Aged Care Enterprise Agreement for the period 2012-2014. The matter was heard in the Fair Work Commission (FWC), which was responsible for the approval of enterprise agreements under the Fair Work Act 2009. The employees argued that the proposed agreement did not adequately address certain conditions and benefits, while St Laurence maintained that the agreement was fair and reasonable.

The central legal issues the FWC had to decide were whether the proposed agreement met the criteria for approval under the Fair Work Act, specifically if it provided for fair and reasonable terms and conditions, and if it was genuinely agreed upon by the parties. The FWC had to assess if the agreement provided for minimum rates of pay, leave entitlements, penalty rates, and other conditions that were no less favourable than those set out in the relevant awards or safety nets. Furthermore, the FWC had to consider if the agreement was made in good faith and without coercion.

In its reasoning, the FWC found that the proposed agreement did not adequately address several key conditions and benefits, particularly concerning penalty rates for shift work and allowances for employees working in isolated locations. The FWC noted that the agreement did not provide for the same conditions as those in the relevant awards, which meant it did not meet the safety net provisions. The FWC also considered the process by which the agreement was negotiated and concluded that there were significant procedural issues, including a lack of genuine consultation and negotiation. Based on these findings, the FWC refused to approve the agreement.

The final orders of the FWC were that the St Laurence Aged Care Enterprise Agreement for 2012-2014 was not to be approved as it did not meet the requirements of the Fair Work Act. The FWC directed the parties to return to the negotiating table to address the identified issues and to reach a genuinely agreed-upon agreement that met the legislative standards.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established