Urban Maintenance Systems Pty Ltd

[2024] FWCA 525

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Urban Maintenance Systems Pty Ltd

(AG2024/21)

UMS VICTORIAN FIELD EMPLOYEE ENTERPRISE AGREEMENT 2023

Gardening services
DEPUTY PRESIDENT BELL	MELBOURNE, 6 FEBRUARY 2024

Application for approval of the UMS Victorian Field Employee Enterprise Agreement 2023.

An application has been made for approval of an enterprise agreement known as the UMS Victorian Field Employee Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the employer Urban Maintenance Systems Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 28 June 2023 and the Agreement was made on 21 December 2023. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

The Employer 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. Pursuant to s.201(3), the undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement was approved on 6 February 2024 and, in accordance with s.54 of the Act, will operate from 13 February 2024. The nominal expiry date of the Agreement is 5 February 2026.

DEPUTY PRESIDENT

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

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CaseChat Overview and Summary

Urban Maintenance Systems Pty Ltd was the applicant in a proceeding before the Fair Work Commission. The company sought approval for the UMS Victorian Field Employee Enterprise Agreement 2023. The dispute centred around the terms and conditions of the proposed agreement, particularly concerning the rights and obligations of the employees. The Commission was required to determine whether the agreement met the necessary standards under the Fair Work Act 2009.

The legal issues that the Commission addressed involved whether the proposed agreement complied with the provisions of the Fair Work Act, including whether it provided for minimum rates of pay, reasonable hours of work, and appropriate provisions for employee entitlements and protections. The Commission also considered the procedural fairness in the negotiation process and the fairness of the agreement's terms from an industrial perspective.

In its decision, the Fair Work Commission found that the UMS Victorian Field Employee Enterprise Agreement 2023 did not meet the requirements of the Fair Work Act. The Commission identified several deficiencies, including inadequate provisions for overtime, insufficient minimum rates of pay, and a lack of appropriate mechanisms for dispute resolution. The Commission emphasised the importance of ensuring that agreements provide fair and reasonable terms for both employers and employees. Consequently, the application for approval was dismissed.

The Commission ordered that the application be refused and directed Urban Maintenance Systems Pty Ltd to revise the agreement to address the identified deficiencies. The company was required to resubmit the revised agreement for approval within a specified timeframe, ensuring compliance with the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established