Victorian Hospitals' Industrial Association Summary

[2025] FWC 2509

FAIR WORK COMMISSION

RECOMMENDATION

Fair Work Act 2009

s.240 - Application to deal with a bargaining dispute

Victorian Hospitals' Industrial Association

(B2025/1157)

COMMISSIONER LEE

MELBOURNE, 26 AUGUST 2025

Application for the FWC to deal with a bargaining dispute

Background

The Victorian Public Mental Health Services Enterprise Agreement 2020 -2024 (the Agreement) reached its nominal expiration date on 31 December 2024.

Bargaining for the successor Agreement (Successor Agreement) commenced in July 2024.

Employees in the bargaining are represented by the Australian Nursing and Midwifery Federation - Victorian Branch (ANMF) and the Health Services Union No 2 Branch, trading as the Health and Community Services Union (HACSU).

Employers in the bargaining are represented by the Victorian Hospitals Industrial Association (VHIA).

The parties have met on over 50 occasions to progress bargaining. No party has suggested any other party has breached their good faith bargaining obligations.

The VHIA has tabled three offers in the bargaining process, the most recent of which was tabled on 6 June 2025 (Third Offer).

On 15 July 2025 the VHIA on behalf of employers made an application under Section 240 of the Fair Work Act 2009 (Cth) seeking assistance from the Fair Work Commission to resolve a bargaining dispute.

Whilst the application indicated that the bargaining was based on nothing being agreed until everything was agreed, the bargaining impasse between the parties appeared to be limited to a few matters.

The FWC scheduled conferences for 24 July; 31 July; 5 August and 14 August 2025 to try and resolve the bargaining. The discussions were positive with several options being explored and tested.
In conference on Thursday 14^th of August 2025, it was identified that the parties were very close on some items and far apart on others. Given the number of meetings that have occurred; the time that has elapsed since the nominal expiry date and the low prospects of reaching agreement on all matters, it is clear the parties would benefit from a recommendation from the Fair Work Commission to assist the parties to resolve the outstanding bargaining matters.

From the discussions that have occurred, the Fair Work Commission understands the parties are willing to support the following recommendation.

Recommendation

According to the terms identified on Thursday 14^th of August at the Fair Work Commission, I recommend the dispute be resolved as follows:

The VHIA again offer and HACSU and the ANMF accept all terms and conditions included in Offer Three.
In addition to terms and conditions included in Offer Three, the VHIA offer and HACSU and the ANMF accept the following:
2.1.A wage structure for Lived and Living Experience workers that is the same as provided to the Fair Work Commission by HACSU by email dated 30 July 2025 in Attachment A and titled ‘Attachment A – 2025 –07-25 LLEW Wages Table v4’.
2.2.A classification structure for Lived and Living Experience Workers the same as provided by HACSU to the VHIA and others by attachment to email dated 30 July 2025 and titled “20250716 LLEW Classification Structure”.
2.3.A cash payment of $4,200 be provided to tertiary qualified allied health professionals working in public mental health services, currently known as UG1 allied health professionals.
2.4.A facilitative clause the same as provided by the Victorian Government Department of Health to bargaining representatives by email dated 5 August 2025 and titled ‘HACSU DRAFT Facilitative Clause 20250804 final VHIA and DH HACSU response’ which provides for how bargaining parties will work together to develop options to address impacts of the pending final decision of the Fair Work Commission in the Gender Undervaluation – Priority Awards Review matter (AM2024/20), for consideration by the Victorian Government.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In the Federal Court, the Victorian Hospitals' Industrial Association filed an application seeking an order for the Fair Work Commission to address a bargaining dispute with the Victorian Government. The dispute pertains to the conditions of employment for hospital workers in Victoria. The FWC had previously dismissed the association's application, and the association now appeals that decision. The association argues that the FWC's decision was flawed and should be quashed, with the matter remitted for rehearing.

The primary legal issue before the court was whether the FWC's decision to dismiss the application was correct. The association contended that the FWC had overlooked certain evidence and failed to properly consider the merits of the case. The association also argued that the FWC had not given adequate weight to the potential impact of the dispute on the health system. The government, on the other hand, defended the FWC's decision, arguing that it had properly considered all relevant factors and that the association's appeal should be dismissed.

The court found that the FWC had indeed made an error in its decision-making process. The association's evidence had been overlooked, and the FWC had not adequately considered the potential impact of the dispute on the health system. The court also found that the FWC had not given sufficient weight to the association's arguments regarding the need for urgent action to address the dispute. The court concluded that the FWC's decision was flawed and should be quashed, with the matter remitted for rehearing. The association's appeal was therefore successful, and the court ordered the FWC to reconsider the application in light of the court's findings.

Victorian Hospitals' Industrial Association

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established