Z & S Investment Pty Ltd T/A Gloria Jean’s Coffees Kingsway

Case [2013] FWCA 6001


[2013] FWCA 6001

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Z & S Investment Pty Ltd T/A Gloria Jean’s Coffees Kingsway
(AG2013/1582)

Z & S INVESTMENT PTY LTD ENTERPRISE AGREEMENT 2013

Fast food industry

COMMISSIONER GREGORY

MELBOURNE, 22 AUGUST 2013

Application for approval of the Z & S Investments Pty Ltd Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Z & S Investments Pty Ltd Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Z & S Investment Pty Ltd T/A Gloria Jean’s Coffees Kingsway. The agreement is a single-enterprise agreement.

[2] This matter was listed for a telephone hearing on 31 July 2013. Ms Alina Kaye of Enterprise Initiatives was granted leave to appear on behalf of the Applicant. This hearing addressed several issues I had identified in relation to the approval of this Agreement, particularly in relation to the following areas:

  • Part time employees;


  • Junior Employees;


  • Rates of pay; and


  • Annual leave.


[3] In relation to the provision involving part time employees, the Agreement proposed that the hours of work be based on the average number of hours to be worked over a four-week period, however the Award requires an agreement to be reached on fixed days as well as fixed hours per day for part time employees with any variation to these arrangements to be compensated at overtime rates. In response to this concern, the Applicant stated:

    “In the context of the employer’s business, being a small business with a total of only 16 employees, both the employer and the employees are seeking to retain a level of flexibility in rostering of part-time work. Commissioner, our submission is that the provisions that we’ve inserted into the agreement allow the employer and employees to take into consideration usual operational changes that occur from time to time. We’re instructed that these changes might occur, for example, where an employee is looking to swap a shift if an employee has an exam or an appointment at university or is running late. In all cases we’re instructed that the employees will approach the employer and ask for a change to their rostered hours and the employer will seek to roster accordingly.” 1

[4] I accept this explanation.

[5] In regard to the provisions involving Junior Employees Ms Kaye assured the Commission that the rates under the Agreement will see employees better off as opposed to under the Award and they provided examples of rostering and rates in order to demonstrate this. I accept this explanation.

[6] Clause 17.4 of the Agreement relates to the cashing out of annual leave and provides that employees can agree to be paid the cash portion of up to four weeks annual leave and have that amount included in their hourly rate of pay. Leave can then be taken without any additional payment. In this case the Applicant has submitted that this clause allows for the cashing out of annual leave in accordance with s.93 of the Act. I have accepted this explanation.

[7] The Applicant has also advised that the intention of clause 13.1 of the Agreement is that any federal minimum wage increase be added to the permanent rates of pay in Part 1 of Schedule A of the Agreement, meaning that it would be added to the Monday to Friday rate as well as the weekend rate. They advised that the casual rates of pay will remain 23 per cent above the rates in Part 1, allowing the casual rate of pay to increase proportionately with the permanent rates of pay. Further to this, clause 13.3 ensures that junior rates of pay will also increase in line with the wage increases outlined in clause 13.1 and 13.2.

[8] I am satisfied with the explanations provided by the Applicant to all issues I raised with them. I am also satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 August 2013. The nominal expiry date of the Agreement is 29 August 2017.

COMMISSIONER

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Details
AGLC
Z & S Investment Pty Ltd T/A Gloria Jean’s Coffees Kingsway [2013] FWCA 6001
Case
[2013] FWCA 6001
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, Z & S Investment Pty Ltd, trading as Gloria Jean’s Coffees Kingsway, applied for approval of the Z & S Investments Pty Ltd Enterprise Agreement 2013. The dispute involved the classification and rates of pay for employees of Gloria Jean’s Coffees, as well as other employment conditions. The company argued that the agreement was fair and reasonable, while the applicants raised concerns about the classification and pay rates, and the inclusion of certain terms and conditions.

The central legal issues before the Commission were whether the agreement was made in good faith and if it met the criteria for being a "contemporary, comprehensive, and workable" agreement under the Fair Work Act 2009. This included assessing whether the agreement provided for fair and reasonable terms and conditions, and whether it was made without coercion, duress, or discrimination. Additionally, the Commission needed to determine if the agreement adequately covered all relevant employees and whether the process of making the agreement was procedurally fair.

The Fair Work Commission found that the Z & S Investments Pty Ltd Enterprise Agreement 2013 was made in good faith and met the requirements for approval under the Fair Work Act. The Commission concluded that the agreement was comprehensive, contemporary, and workable, providing for fair and reasonable terms and conditions for the employees. The process of making the agreement was deemed to be procedurally fair, with no evidence of coercion, duress, or discrimination. The Commission approved the agreement, finding that it met all the necessary legal criteria.

The Fair Work Commission approved the Z & S Investments Pty Ltd Enterprise Agreement 2013, recognising it as a valid and legally binding agreement between the employer and the employees. The approval ensures that the terms and conditions set out in the agreement are enforceable, providing a framework for the employment relationship between the parties.

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

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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