RELATED DECISIONS OF INDUSTRIAL TRIBUNALS
33 In supporting its construction argument United Voice placed some reliance on the decision of the Full Bench of the Fair Work Commission ("the FWC") in United Voice (Qld Branch) v MSS Security Pty Ltd (2017) 266 IR 231; [2017] FWCFB 651.
34 The issue in MSS Security was whether a Commissioner had erred in finding that an enterprise agreement passed the better off overall test ("the BOOT test"): see ss 186(2)(d) and 193(1) of the FW Act. This required a comparison between the relevant Award provision and the related provisions in the agreement with a view to forming "an impressionist assessment" of whether or not employees would be better off were the agreement to be approved and become operative: see University of New South Wales (Professional Staff) Enterprise Agreement 2010 [2010] FWAA 9588 at [96].
35 The Commissioner had approved an enterprise agreement which provided for the allocation of overtime to Sundays regardless of where in the roster those hours fell. United Voice challenged the approval on the basis that the "allocation" provision would permit the employer to avoid payment of the overtime penalties which would otherwise be payable under the Award. As a result, the union contended, the enterprise agreement did not leave employees better off overall compared to the Award and could not be approved.
36 The respondent in that proceeding, MSS Security, submitted that there was no provision of the Award which determined how or when the "averaged" hours were to be worked within the roster cycle and that there was no provision of the Award which prohibited or prevented an employer from allocating overtime within the roster cycle on any day it sought fit (see at [24]). As a result, it contended, no adverse comparison should be made between the Award and the agreement.
37 The Full Bench of the FWC accepted the union's submissions, saying:
34 Clause 21.1 of the Award prescribes that hours in excess of 304 hours over an eight week roster are treated as overtime. Clause 23.3 of the Award prescribes that when an employee works overtime, the employer must pay the employee the ordinary time rate for the period of overtime together with the following loadings:
For overtime worked on Loading payable in addition to
Ordinary time rate %
Monday to Friday - first 2 hours 50
Monday to Friday - thereafter 100
Saturday - first 2 hours 50
Saturday - thereafter 100
Sunday 100
Public Holiday 150
35 By comparison, cl 4.3.5(a) of the Agreement provides that overtime in a 12-hour rotating roster cycle will generally be allocated to hours that fall on a Sunday: at the end of a Saturday and a Sunday day shift. The effect of cl 4.3.5 of the Agreement is that over the period of the roster, the overtime hours are assigned to Sunday work, regardless of when in the roster those hours actually fell. Therefore, no additional penalty over that which applied to Sunday work would be payable.
36 Pursuant to the Award, overtime is payable when the hours in excess of the maximum have been worked. By shifting those hours from the end of the roster, to Sundays earlier in the roster, the Agreement reduced the number of overtime hours for which loading would be payable. We are of the view that this is disadvantageous to the non-aggregated wage employees of the Respondent when compared to what these employees are offered under the Award. It follows that non-aggregated wage employees are better off under cll 21.1 and 23.3 of the Award than under cl 4.3.5 of the Agreement.
38 United Voice asserted that, the necessary, although unstated, premise of the conclusion of the Full Bench was that the "allocation" process purported to be authorised under the agreement was not available under the Award. The failure to make that point explicit demonstrated, so it was submitted, that it was self-evident, and that Wilson Security's present submissions were untenable.
39 Wilson Security, for its part, also relied on an earlier decision of the FWC. That decision was Harland v MSS Security Pty Ltd [2013] FWC 8064. This was a consent arbitration by a Commissioner under s 739 of the FW Act. One of the issues in dispute was the calculation of payments for the applicants under a roster constructed pursuant to the Award presently under consideration.
40 In dealing with this aspect of the dispute the Commissioner said that:
[70] The applicants submit that they do not object to working 12 hour shifts but do object to the manner in which the respondent sets the roster so that the Sunday is a shift of 12 hours overtime.
[71] This aspect of the respondent's roster minimises the wage cost to the respondent.
[72] If the roster was arranged differently the 12 hours of overtime which under the respondent's roster falls on a Sunday would be spread across a number of different shifts and these overtime hours could be paid at double time and in addition the ordinary hours worked on the Sunday would also be paid at double time.
[73] The applicants submit that the roster should show only 10 ordinary hours for each 12 hour shift and the balance, 2 hours, would be overtime. The applicants see the respondent's approach to rostering as reducing their wages.
[74] In [Award Modernisation Decision - Decision - Full Bench] [2008] AIRCFB 1000 a Full Bench of the Commission dealing with award modernisation and in particular the making of priority modern awards specifically considered the terms of the new Security Services Industry Award 2010 [MA000016] (the Award in this matter) and the exposure draft that was available for the parties comment, and dealt with the issue of 12 hour ordinary time shifts as follows:
"Ordinary hours of work and rostering
[296] We have been persuaded by the submissions of ASIAL that provision should be made for 12 hour ordinary time shifts. We recognise that the security services industry operates 24 hours a day, seven days a week and that 12 hour shifts are a ubiquitous feature of the industry throughout Australia. The exposure draft provided for 12 hour shifts but only on the basis of 10 hours of ordinary time and two hours of rostered overtime. The absence of provision for 12 hour ordinary time shifts would result in increased costs to many employers and result in many employees working more overtime than they may wish to work. The pre-reform awards in NSW, Victoria and Western Australia contain facilitative clauses that allow for 12 hour ordinary time shifts to be worked by agreement with a majority of employees, as does the relevant NSW NAPSA. We have included such a clause based on the clause in the Victorian pre-reform award." (Underlining added)
[75] The applicants' approach to their calculations is based on each 12 hour shift being assumed to comprise 10 ordinary hours and 2 hours overtime. It is significant that the Full Bench of the Commission at the time of making the Award expressly identified that this method of working would result in increased costs to many employers and deliberately provided for 12 hour ordinary time shifts to avoid this cost impost on employers and the Full Bench recognised that amongst others the Western Australian pre-reform award provided for 12 hour ordinary time shifts already.
[76] The Roster design in any workplace is at the discretion of the employer subject to the Award requirements.
[77] There is nothing inappropriate in the respondent designing its rosters to minimise its costs as the Full Bench has clearly recognised. In terms of the respondent's approach to rostering ordinary hours and consequently where overtime hours fall in that roster, I am satisfied the respondent is entitled to operate under the roster it has designed in this case.
[78] The rostering approach of the respondent is consistent with the terms of the Award. There is nothing in the Award that prohibits Sunday shifts being 12 hours of overtime. I am satisfied that the respondent's calculations, in terms of ordinary hours and overtime under their roster, meet the requirements of the Award.
41 Harland was referred to in argument before the Full Bench in MSS Security. The Full Bench's reasons record (at [13]-[14]) that United Voice, in that case, had advanced a number of arguments in support of the proposition that Harland was distinguishable. When, however, the Full Bench came to the section of its reasons headed "Consideration" (in which the quoted paragraphs [34]-[36]) appear no mention is made of Harland or of the arguments advanced suggesting that it was distinguishable. It is also notable that the Full Bench in MSS Security did not engage with MSS's submissions, based on Harland and what the Full Bench had said in the Award Modernisation Decision - Decision - Full Bench [2008] AIRCFB 1000, about the provisions of the Award dealing with rostering and overtime payments.
42 Another earlier decision of the former Australian Industrial Relations Commission which was of potential relevance but was not, apparently, referred to or considered by the Full Bench in MSS Security was Liquor, Hospitality and Miscellaneous Union v Chubb Security Australia Limited [2009] AIRC 4. This was a private arbitration about the same issue which arises the present case. It dealt with equivalent provisions under the forerunner of the present Award, the Security Employees (ACT) Award 1996. The union had complained that rostering overtime on Sunday shifts throughout the cycle was in breach of the Award and a related agreement and that overtime should be paid only on the last 32 hours of a 336 hour roster cycle, regardless of the days of which those 32 hours fell.
43 The Senior Deputy President who conducted the private arbitration rejected this submission. He said:
[11] Chubb has adopted the practice of rostering specific Sunday shifts as scheduled overtime throughout rotating 12 hours rosters since the introduction of 12 hour shifts in the ACT … Over the eight week cycle, guards work exactly the same shifts as each other, but at different times through the cycle. Over the cycle, the guards will work either three 12 hour shifts or four 12 hour shifts per week. This averages out to 42 hours per week. In a 12 hour rotating roster, each guard is rostered to work 336 hours over an eight week period. 304 hours are rostered as ordinary hours and 32 hours as overtime hours. The overtime hours are rostered on two Sunday shifts and eight hours of a Saturday night/Sunday morning shift. Each guard is rostered to work each of the overtime shifts once during the eight week cycle. The overtime shifts occur at specific instances in the eight week roster period. …
[12] Rostering overtime in this way is the most effective arrangement for Chubb. Mr Myers gave evidence that rostering and paying overtime in the manner sought by LHMU would increase Chubb's costs of operating the 12 hour roster system by approximately 4% …
…
[18] On the basis of the evidence, I find the following facts form part of the relevant circumstances within which the overtime provisions of the 2004 agreement should be construed.
• There is a long-standing and well recognized practice by many companies in the security industry to ensure, where services are provided on a seven days a week basis, that overtime falls on Sunday;
• This is done to minimize costs as the ordinary and overtime rates on Sundays are effectively the same;
• …
[19] All these considerations support a construction of the agreement that permits the allocation of overtime to Sundays over the course of the roster cycle.
44 None of these decisions is, of course, binding on the Court. They do, however, provide assistance in understanding the long and ongoing discord between unions and employers about the proper construction and application of the Award.