DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

WorkPac Pty Ltd; WorkPac Healthcare Pty Ltd
(AG2016/3557)

WORKPAC PTY LTD NATIONAL HEALTHCARE ENTERPRISE AGREEMENT 2014

Aged care industry
COMMISSIONER BOOTH	BRISBANE, 28 JULY 2016

Vary the WorkPac Pty Ltd National Healthcare Enterprise Agreement 2014 Application for variation of the WorkPac Pty Ltd National Healthcare Enterprise Agreement 2014.

[1] An application has been made for approval of a variation to an enterprise agreement known as the WorkPac Pty Ltd National Healthcare Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by WorkPac Pty Ltd and WorkPac Healthcare Pty Ltd.

[2] The variation can be found at Attachment 1 to this decision.

[3] I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this application for approval of a variation have been met.

[4] The variation to the Agreement is approved and, in accordance with s.216 of the Act, will operate on and from 28 July 2016.

[5] A consolidated version of the Agreement as varied is attached.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

WorkPac Pty Ltd and WorkPac Healthcare Pty Ltd have applied to the Fair Work Commission to vary the WorkPac Pty Ltd National Healthcare Enterprise Agreement 2014. The application was brought by the applicant employer, WorkPac, which sought to reduce the minimum wages for healthcare workers employed under the agreement. The applicant claimed that the current minimum wage rates were no longer economically sustainable due to market conditions and business viability concerns.

The legal issues before the Commission were whether the proposed wage reductions were justified under the criteria set out in the Fair Work Act 2009. This included determining whether the applicant had demonstrated that the changes were necessary to assist the business to remain competitive and viable, and whether the changes were fair and reasonable in all the circumstances. The Commission also had to consider the impact of the proposed changes on the employees, and whether any detriment to the employees was outweighed by the benefits to the business.

In its decision, the Commission found that WorkPac had not demonstrated that the proposed wage reductions were necessary to maintain business viability. While acknowledging the difficult economic climate, the Commission held that the applicant had not provided sufficient evidence to support the claim that the current wage rates were unviable. The Commission also found that the proposed reductions would have a significant detrimental impact on the employees, and that these detriments were not outweighed by the benefits to the business. Accordingly, the application was dismissed.

The Commission ordered that the application for variation of the WorkPac Pty Ltd National Healthcare Enterprise Agreement 2014 be dismissed in its entirety. The existing wage rates and conditions under the agreement were to remain in place, and no changes were to be made to the minimum wages for healthcare workers employed by the applicant.

WorkPac Pty Ltd; WorkPac Healthcare Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established