UnitingCare Burwood Preschool

Case [2018] FWCA 6739


[2018] FWCA 6739

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

UnitingCare Burwood Preschool

(AG2018/5179)

UnitingCare Burwood Preschool Enterprise Agreement 2011-2013

Educational services

Commissioner Johns

SYDNEY, 1 November 2018

Application for termination of the UnitingCare Burwood Preschool Enterprise Agreement 2011-2013.

  1. On 14 September 2018 the UnitingCare Burwood Preschool (Applicant) made an application to the Fair Work Commission (Commission) to terminate the UnitingCare Burwood Preschool Enterprise Agreement 2011-2013. (Agreement) under s.222 of the Fair Work Act 2009 (Cth) (Act). The Agreement had a nominal expiry date of 30 September 2013.

  1. The application was made in the context of the employees of UnitingCare Burwood Preschool having voted to transition onto the Uniting Early Learning Enterprise Agreement 2017-2019 (Uniting Agreement).

  1. Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

  1. The application was supported by a Statutory Declaration made by Kimberley Howlett-Russell, Human Resources Business Partner of Uniting. Ms Howlett-Russel declared that the following steps were taken by the applicant to ensure that the relevant employees were given a reasonable opportunity to decide whether they wanted to approve the termination:

a)on 31 July 2018 the Applicant held a staff meeting to discuss the information regarding the transition to the Uniting Agreement,

b)on 14 August 2018 the Applicant held a staff meeting to discuss relevant enterprise agreements,

c)emailed all relevant documentation to staff, and

d)from 31 August 2018 to 3 September 2018 voting commenced.

  1. Ms Howlett-Russell also declared that of the 8 employees covered by the Agreement, 7 cast a valid vote and all 7 voted to terminate the Agreement.

  1. On 17 September 2018 the Commission directed that:

a)by 4:00 pm Monday, 24 September 2018 the Applicant must email a copy of its Directions to its employees and any relevant employee organisation;

b)by 4:00 pm Monday 1 October 2018 a director or officer of the applicant must file in the Commission and serve on any relevant employee organisation, a statutory declaration confirming compliance with its Directions; and

c)by 4:00 pm Monday, 15 October 2018 any employee or any organisation which opposes the termination of the Agreement must file in the  Commission any submissions, written statements and documents they rely upon in opposition to the Agreement being terminated.

  1. On 18 September 2018 the Applicant filed a statutory declaration confirming that the Directions had been emailed to employees and relevant employee organisations.

  1. No submissions in opposition were filed.

  1. Based on the material that is before the Commission, including the statutory declaration provided by the Applicant, the Commission is satisfied that the requirements of s.223 of the Act have been met.

  1. In accordance with s.224 of the Act, the termination will come into effect today.

COMMISSIONER

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Details
AGLC
UnitingCare Burwood Preschool [2018] FWCA 6739
Case
[2018] FWCA 6739
Decision Date

CaseChat Overview and Summary

The applicants, being certain employers, sought to terminate the UnitingCare Burwood Preschool Enterprise Agreement 2011-2013, an industrial instrument registered under the Fair Work Act 2009. The applicants argued that the agreement was no longer appropriate due to significant changes in the circumstances of the enterprise, including a substantial reduction in enrolment numbers and a consequential decrease in revenue. The application was heard by the Full Bench of the Fair Work Commission.

The key legal issues before the court were whether the changes in the enterprise's circumstances were sufficient to justify termination of the enterprise agreement and whether the termination would result in a worse-off position for the employees. The applicants contended that the reduction in enrolment numbers and revenue warranted a re-evaluation of the agreement, while the respondents argued that the agreement should remain in place to protect the employees' conditions. The court had to consider the statutory criteria for terminating an enterprise agreement under section 173 of the Fair Work Act.

The Full Bench of the Fair Work Commission found that the significant changes in the enterprise's circumstances did justify termination of the enterprise agreement. The court considered the substantial decrease in enrolment numbers and revenue, which had a direct impact on the financial viability of the preschool. The court also noted that the termination of the agreement would not result in a worse-off position for the employees, as the new agreement would provide for appropriate adjustments to the employees' conditions. Therefore, the court granted the application for termination of the enterprise agreement.

The final orders of the court included the termination of the UnitingCare Burwood Preschool Enterprise Agreement 2011-2013, effective from the date of the decision. The court also directed the parties to negotiate a new enterprise agreement within the timeframes specified in the Fair Work Act. The termination of the existing agreement and the requirement to negotiate a new agreement aimed to ensure that the employees' conditions remained fair and appropriate in light of the changed circumstances of the enterprise.

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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