Starhill Hotel (Brisbane) Pty Limited

Case [2016] FWCA 1056


[2016] FWCA 1056

DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement
Starhill Hotel (Brisbane) Pty Limited
(AG2015/7770)

BRISBANE MARRIOTT HOTEL ENTERPRISE AGREEMENT 2015

Hospitality industry

DEPUTY PRESIDENT SAMS SYDNEY, 17 FEBRUARY 2016

Application for approval of the Brisbane Marriott Hotel Enterprise Agreement 2015.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed

by Starhill Hotel (Brisbane) Pty Ltd (the ‘applicant’) which seeks the approval of the Fair

Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the

Brisbane Marriott Hotel Enterprise Agreement 2015 (the ‘Agreement’). The Agreement was

negotiated with United Voice (the ‘Union’) and is to cover 140 employees who are employed

in hospitality roles at a hotel operated by the applicant, other than those employed in

managerial roles, in Brisbane, Queensland. For the purposes of s 186(3) of the Act, I am

satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2]        The employees were last notified of their representational rights on 9 November 2015,

and voting for the Agreement’s approval took place on 4 and 5 December 2015. The time

limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, 94 of the 107

employees who cast a valid vote, agreed to approve the Agreement. The application for

approval of the Agreement was lodged on 17 December 2015, thereby satisfying s 185(3) of

the Act.

[3]        In the Employer’s Declaration in support of the application (Form F17) Ms N

Rasheed, Area Director Human Resources, identified the Hospitality Industry (General)

Award 2010 [MA000009] as the relevant reference instrument for the purposes of the Better

[2016] FWCA 1056

Off Overall Test (the ‘BOOT’). She said that the Agreement does provide for some terms and

conditions that are less beneficial than those under the Modern Award, including shorter

minimum engagements, increased flexibility in the spread of hours and a change to rosters at

four days’ notice. However, the Agreement provides for higher rates of pay, enhanced higher

duties allowances and an apprentice bonus. I am satisfied that the Agreement passes the

BOOT. The Agreement provides for the mandatory flexibility and consultation terms at

clauses 1.3 and 6.5 respectively, and a disputes resolution procedure at clause 6.1 provides for

conciliation by the Commission.

[4]        At a hearing of the application on 11 February 2016, Mr M Norman, Solicitor and Mr

M Cooper, Solicitor appeared with Ms N Rasheed for the applicant and Mr S Ong for the

Union. Mr Norman outlined the main features of the Agreement and submitted that all of the

legislative requirements for approval of the Agreement have been satisfied and the Agreement

should be approved by the Commission. He explained that rates of pay are to be at least 3%

higher than those under the Award from commencement of the Agreement’s operation and 1

July 2016, 2.5% higher on 1 July 2016 and 2% higher on 1 July 2017. Mr Norman also

provided an undertaking designed to ensure that employees who have been employed full

time for six months or part time for twelve months immediately prior to the commencement

of an adult apprenticeship will not be subject to a reduction in their ordinary hourly rates of

pay, although he said that the applicant employed no adult apprentices at this time. Pursuant

to s 191(1) of the Act, the undertaking is taken to be a term of the Agreement. A copy of this

undertaking is attached to the Agreement and marked as ‘Annexure A’. Mr Ong supported the

submissions of the applicant. The Union had filed a Declaration in relation to the application

(Form 18) supporting the approval of the Agreement and giving notice that it wishes to be

covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the

Union is to be covered by the Agreement.

[2016] FWCA 1056

[5]        Having heard the parties’ submissions and upon reviewing the terms of the

preapproval process documentation and the Agreement itself, I am satisfied that all of the

requirements of the Act, in particular ss 180, 186, 187, 188, 190 and 191 in so far as relevant

to this application, have been met. Accordingly, I approve a single enterprise agreement

known as the Brisbane Marriott Hotel Enterprise Agreement 2015. Pursuant to s 54 of the

Act, the Agreement shall operate from the first full pay period after 18 February 2016 and

have a nominal expiry date of 17 February 2020.

DEPUTY PRESIDENT

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Details
AGLC
Starhill Hotel (Brisbane) Pty Limited [2016] FWCA 1056
Case
[2016] FWCA 1056
Decision Date

CaseChat Overview and Summary

In the matter of Starhill Hotel (Brisbane) Pty Ltd, the applicant sought the approval of the Fair Work Commission for a single enterprise agreement, the Brisbane Marriott Hotel Enterprise Agreement 2015, to be applied to 140 employees in hospitality roles at a Brisbane hotel, excluding managerial positions. The agreement, negotiated with the Union, was voted on by the employees and approved by a majority. The Deputy President was satisfied that the group of employees had been fairly chosen and that the application complied with the statutory time limits and other legislative requirements.

The primary legal issue was whether the proposed enterprise agreement met all the requirements of the Fair Work Act 2009, particularly in terms of the Better Off Overall Test and the mandatory inclusion of certain terms such as flexibility and consultation provisions and a dispute resolution mechanism. The applicant argued that the agreement was better off overall for the employees compared to the applicable award, providing higher pay rates and allowances but also allowing for shorter minimum engagements and increased flexibility in scheduling.

The Deputy President found that the agreement met all the statutory requirements for approval. The agreement included the mandatory terms required by the Act and provided for terms and conditions that were better off overall for the employees, as it offered higher pay rates and allowances despite some less beneficial terms. The agreement also included an undertaking to protect the pay rates of certain employees transitioning into apprenticeships, which was incorporated into the agreement as a term. The Deputy President concluded that the agreement should be approved and set the commencement date from the first full pay period after 18 February 2016, with a nominal expiry date of 17 February 2020.

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

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Ratio Decidendi

Legal Principle Established

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