The Mac Services Group Pty Ltd

[2013] FWCA 1561

[2013] FWCA 1561

FAIR WORK COMMISSION

DECISION

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

The Mac Services Group Pty Ltd
(AG2013/489)

THE MAC SERVICES GROUP PTY LTD NSW ACCOMMODATION SERVICES ENTERPRISE AGREEMENT 2013

Hospitality industry
DEPUTY PRESIDENT SAMS	SYDNEY, 15 MARCH 2013

Application for approval of the The MAC Services Group Pty Ltd NSW Accommodation Services Enterprise Agreement 2013 .

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by the MAC Services Group 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 MAC Services Group Pty Ltd NSW Accommodation Services Enterprise Agreement 2013 (the ‘Agreement’). The Agreement is to cover 5 employees who are engaged in the provision of accommodation services for fly in/fly out workers in the mining industry around Narrabri, New South Wales. 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 7 February 2013 and voting for the Agreement’s approval took place on 1 March 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, all 5 of the employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 5 March 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr T Jackson, Human Resources Manager, identified the Hospitality Industry (General) Award 2010 [MA000009] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Jacksonsaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the Award, including the removal of meal and clothing allowances, annual leave loading and penalty rates for work performed on Saturdays and Sundays. However, the removal of the meal allowance was due to the fact that staff receive meals on site in addition to free accommodation and the removal of the clothing allowance was due to the standard issue of uniforms by the employer. Annual leave loading and penalty rates for Saturdays and Sundays were said to be absorbed by an increase in the rate of pay. The Agreement provides for two 3% increases in rates of pay on 1 July 2013 and 1 July 2014. The Agreement also provides for a number of terms and conditions more beneficial than, or in excess of, the Award, including notice requirements that are more beneficial to the employee, maternity and paternity leave above other statutory entitlements and more generous redundancy entitlements. I was provided with a detailed comparison between the Agreement and the Award which demonstrated that employees will be significantly better off under the Agreement. Accordingly, I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 7 and 8 respectively, and a disputes resolution procedure clause 9 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 13 March 2013, Mr T Jackson,appeared for the applicant. Mr Jackson 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 the Agreement provided for annualised wages so that employees engaged on ‘two weeks on, one week off’ rosters are able to organise their finances more easily. Mr Jackson said that where employees are sourced locally (and meals and accommodation are not provided), an allowance of $22 per day is paid. He also said that the Agreement largely mirrored an Agreement approved in relation to its more significant operations in Queensland (The MAC Services Group Pty Ltd Queensland Accommodation Services Enterprise Agreement 2012. This Agreement was negotiated with two Unions (United Voice and the Australian Workers’ Union) and was approved by Her Honour Senior Deputy President Acton on 27 November 2012: See: The MAC Services Group Pty Ltd re The MAC Services Group Pty Ltd Queensland Accommodation Services Enterprise Agreement 2012 [2012] FWAA 9997.

[5] An obvious error was identified in the Definitions clause (cl 4) and, pursuant to s 602 of the Act, the word ‘Queensland’ should be deleted in that clause and replaced with the words ‘New South Wales’.

[6] Having heard the applicant’s 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 MAC Services Group Pty Ltd NSW Accommodation Services Enterprise Agreement 2013.Pursuant to s 54 of the Act, the Agreement shall operate from 20 March 2013 and have a nominal expiry date of 3 December 2015.

DEPUTY PRESIDENT

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