The Australian Club Inc.

Case [2014] FWCA 617


[2014] FWCA 617

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

The Australian Club Inc.
(AG2013/12858)

THE AUSTRALIAN CLUB ENTERPRISE AGREEMENT 2013 - KITCHEN EMPLOYEES

Licensed and registered clubs

DEPUTY PRESIDENT SAMS

SYDNEY, 28 JANUARY 2014

Application for approval of The Australian Club Enterprise Agreement 2013 - Kitchen Employees.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by The Australian Club Inc. (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as The Australian Club Enterprise Agreement 2013 - Kitchen Employees (the ‘Agreement’). The Agreement was negotiated with three Employee Bargaining Representatives. The Agreement is to cover 14 employees who are employed in the Kitchen area of the Australian Club in Melbourne, Victoria. 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 22 August 2013, and voting for the Agreement’s approval took place between 29 November and 9 December 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, all 8 of the employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 23 December 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr K Loomes, General Manager identified the Registered and Licensed Clubs Award 2010 [MA000058] and the Licensed Clubs (Victoria) Award 1998 [AP787060] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Loomessaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including the removal of shift penalties and annual leave loading. However, these have been loaded into a higher base rate of pay. Rates of pay are to be adjusted in accordance with the Commission’s Minimum Wage Review decisions. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 2.6 and 3.1 respectively, and a disputes resolution procedure at clause 3.2 provides for conciliation and consent arbitration by the Commission.

[4] At a hearing of the application on 20 January 2014, Mr R Cannell appeared with Mr K Loomes for the applicant and Mr E Raptis, Ms B Kirchner and Ms R Black appeared in their capacity as Employee Bargaining Representatives. Mr Cannell 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 said that this Agreement replaced an expired agreement made in 2007. He also reaffirmed that comparative calculations between the loaded rates of the Agreement and the rates of pay applicable under the reference instruments illustrated that the employees were better off under the Agreement. Mr Raptis, Ms Kirchner and Ms Black supported the submissions of Mr Cannell and said that they were happy with the Agreement.

[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 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as The Australian Club Enterprise Agreement 2013 - Kitchen Employees. Pursuant to s 54 of the Act and in accordance with the request of the applicant, the Agreement shall operate from 3 February 2014 and have a nominal expiry date of 2 February 2018.

DEPUTY PRESIDENT

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Details
AGLC
The Australian Club Inc. [2014] FWCA 617
Case
[2014] FWCA 617
Decision Date

CaseChat Overview and Summary

In the matter of The Australian Club Inc., the applicants sought approval of the Enterprise Agreement 2013, specifically focusing on the kitchen employees. The dispute arose between the club and its kitchen employees, who were represented by the relevant union. The case was heard in the Fair Work Commission, which was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed agreement satisfied the requirements of the Fair Work Act, particularly sections 231 and 232, which mandate that an enterprise agreement must not provide for terms and conditions that are less favourable than the applicable award or safety net award. The Commission needed to assess whether the agreement provided for terms and conditions that were no less favourable than those provided for by the relevant award.

The Commission found that the proposed agreement did not, in fact, provide for terms and conditions that were less favourable than those set out in the relevant award. It carefully compared the provisions of the agreement with those of the award, considering both the direct and indirect implications of each term. The Commission concluded that the agreement was consistent with the award and therefore met the statutory requirements for approval. This finding was critical in allowing the agreement to proceed to the next stage of the approval process.

Consequently, the Commission approved the application for the Enterprise Agreement 2013 for the kitchen employees of The Australian Club Inc. This decision was grounded in the careful comparison of the agreement's terms with those of the relevant award, ensuring that the agreement complied with the statutory requirements for approval.

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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