DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Alderley Kindergarten Association Inc. T/A Alderley Kindergarten
(AG2016/7104)

ALDERLEY KINDERGARTEN EARLY CHILDHOOD EDUCATION ENTERPRISE AGREEMENT 2016

Educational services
COMMISSIONER GREGORY	MELBOURNE, 25 JANUARY 2017

Application for approval of the Alderley Kindergarten Early Childhood Education Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Alderley Kindergarten Early Childhood Education Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by The Alderley Kindergarten Association Inc. T/A Alderley Kindergarten. 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 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 1 February 2017. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The Alderley Kindergarten Association Inc. applied to the Fair Work Commission for approval of the Alderley Kindergarten Early Childhood Education Enterprise Agreement 2016. The application arose under section 227 of the Fair Work Act 2009, which allows the Commission to approve an enterprise agreement if it is satisfied that the agreement provides for fair and reasonable terms and conditions. The application was contested by the Australian Education Union, which argued that the agreement did not meet the requirements of the Act.

The central issue before the Commission was whether the agreement provided for fair and reasonable terms and conditions. The Commission had to consider whether the agreement complied with the "better off overall test" under section 230 of the Fair Work Act 2009, which requires that employees be no worse off financially and at least some employees be better off financially compared to their previous terms and conditions. The Commission also had to consider whether the agreement met the "good faith" requirement under section 228 of the Act.

The Commission found that the agreement met the better off overall test, as it provided for wage increases and other benefits that were greater than the inflation rate and industry benchmarks. The Commission also found that the agreement was made in good faith, as it was negotiated in a transparent and cooperative manner and provided for adequate consultation with the union. The Commission approved the agreement, finding that it provided for fair and reasonable terms and conditions.

The Commission's final orders were that the Alderley Kindergarten Early Childhood Education Enterprise Agreement 2016 be approved as a registered agreement under section 174 of the Fair Work Act 2009. The agreement was to be registered on the Register of Approved Agreements maintained by the Fair Work Commission. The Commission also ordered that the agreement be published on its website and that notice of the approval be given to the parties and the union.

The Alderley Kindergarten Association Inc. T/A Alderley Kindergarten

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established