St Michael's College

[2014] FWCA 370

FAIR WORK COMMISSION

DECISION

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

St Michael's College
(AG2013/11955)

ST MICHAEL'S COLLEGE ENTERPRISE AGREEMENT 2014-2016

Educational services
COMMISSIONER BOOTH	BRISBANE, 16 JANUARY 2014

Application for approval of the St Michael's College Enterprise Agreement 2014-2016.

[1] An application has been made for approval of a single enterprise agreement known as the St Michael's College Enterprise Agreement 2014-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by St Michael's College.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] On 14 January 2014 undertakings were provided by the employer. Pursuant to s.190 of the Act, I accept the Company’s undertakings. A copy of the undertakings is attached to the Agreement and forms part of the Agreement.

[4] The Independent Education Union of Australia, 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 January 2014. The nominal expiry date of the Agreement is 15 January 2017.

COMMISSIONER

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CaseChat Overview and Summary

St Michael's College applied for approval of an enterprise agreement that was entered into with its employees, who were members of a union. The application was made to the Fair Work Commission under section 232 of the Fair Work Act 2009. The union opposed the application on the basis that the agreement was not in the best interests of the employees and did not meet the "better off overall test". The dispute centred on whether the agreement, which included provisions for the reduction of paid leave and the introduction of performance-based pay, adequately provided for the employees' entitlements and overall welfare.

The legal issues before the Commission were whether the agreement met the statutory requirements of the Fair Work Act, particularly sections 230 and 231, which relate to the "better off overall test" and the "good faith" bargaining requirement. The Commission had to consider if the proposed changes in the agreement would result in employees being better off overall, taking into account all benefits and detriments, and if the bargaining process was conducted in good faith. The union argued that the agreement did not satisfy these criteria, primarily because of the reduction in leave entitlements and the uncertain nature of performance-based pay.

The Commission found that the agreement did indeed meet the "better off overall test" as the changes proposed were compensated by other benefits in the agreement, such as the introduction of a more flexible work environment and additional allowances. The Commission also determined that the bargaining process was conducted in good faith, as there was evidence of extensive consultation and negotiation between the parties. The union's concerns about the reduction of leave entitlements were addressed by demonstrating that the overall package of benefits provided to the employees was superior to their previous conditions. Therefore, the application for approval was granted.

The Fair Work Commission approved the St Michael's College Enterprise Agreement 2014-2016, rejecting the union's opposition. The decision confirmed that the agreement met the statutory requirements under the Fair Work Act, including the "better off overall test" and the "good faith" bargaining requirement. The agreement was deemed to be in the best interests of the employees, and the Commission found that the proposed changes, while reducing certain entitlements, were outweighed by the overall benefits provided.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established