DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Victorian Hospitals’ Industrial Association
(AG2018/6486)

MERRI HEALTH ENTERPRISE AGREEMENT 2018

Health and welfare services
COMMISSIONER YILMAZ	MELBOURNE, 24 MAY 2019

Application for approval of the Merri Health Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Merri Health Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Victorian Hospitals’ Industrial Association. The Agreement is a single enterprise agreement.

[2] 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.

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

[4] On 9 May 2019, the Applicant informed the Commission that the motor vehicle allowance rates at pages 160, 162 and 164 were incorrectly identified in dollar figures as opposed to cents value and requested that the Agreement be amended to rectify the error. On 16 May 2019 I sought the views of the bargaining representatives in relation to amending the motor vehicle allowance rates to cents; however I did not receive correspondence from the bargaining representatives in relation to the matter. On 22 May the Applicant filed an amended version of the Agreement correcting the error. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[5] The Community and Public Sector Union and Health Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54, will operate from 31 May 2019. The nominal expiry date of the Agreement is 1 December 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Victorian Hospitals’ Industrial Association brought an application to the Fair Work Commission seeking approval of the Merri Health Enterprise Agreement 2018. The application arose following negotiations between the association, representing hospital employees, and Merri Health, an organisation providing community health services. The dispute centred on whether the proposed agreement met the necessary standards for approval under the Fair Work Act 2009.

The legal issues the court had to address included whether the agreement complied with the requirements for minimum entitlements and whether it provided for fair and reasonable terms for the employees. This involved scrutinising the proposed terms regarding wages, leave, and other employment conditions to ensure they met the minimum standards set by the Fair Work Act. Additionally, the court had to assess if the agreement was negotiated in good faith and if it provided for fair and reasonable terms for both parties.

The Fair Work Commission found that the Merri Health Enterprise Agreement 2018 complied with the statutory requirements for minimum entitlements and was negotiated in good faith. The commission noted that the agreement provided for fair and reasonable terms for the employees and did not impose any unreasonable conditions. Consequently, the commission approved the agreement, stating that it met all necessary criteria under the Fair Work Act.

The commission's decision was made final, and the Merri Health Enterprise Agreement 2018 was approved, effective from the date of the decision. This outcome allowed the agreement to be implemented, providing a framework for employment conditions within Merri Health.

Victorian Hospitals’ Industrial Association

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established