[2014] FWCA 1133

Due to an administrative error the attached document replaces the document previously issued with the code [2014] FWC 936 on 13 February 2014.

The following changes have been made:

No changes have been made to the wording of the Decision and attached Agreement.

Michelle Reynolds

Associate to Commissioner Bissett

Dated: 14 February 2014.

[2014] FWCA 1133

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

The University of Melbourne
(AG2013/12869)

UNIVERSITY OF MELBOURNE ENTERPRISE AGREEMENT 2013

Educational services

COMMISSIONER BISSETT

MELBOURNE, 13 FEBRUARY 2014

Application for approval of The University of Melbourne Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the University of Melbourne Enterprise Agreement 2013 (the 2013 agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The application was made by The University of Melbourne (the University). The 2013 agreement is a single-enterprise agreement.

[2] The National Tertiary Education Industry Union (NTEU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), CPSU, the Community and Public Sector Union, Construction, Forestry, Mining and Energy Union (CFMEU), and United Voice (collectively ‘the unions’) are bargaining representatives for the 2013 agreement.

[3] To address issues raised by the unions and concerns I had with the approval of the 2013 agreement, approval of the 2013 agreement was subject to a hearing and detailed submissions of the University and the unions.

Flexibility provisions

[4] The 2013 agreement covers all employees of the university with staff classified as ‘academic’ or ‘professional’ staff.

[5] Section 202 of the Act states:

[6] Section 202(1)(a) suggests that the flexibility term must enable each employee to reach an agreement with their employer.

[7] Clause 9 of the 2013 agreement deals with the flexibility term:

[8] The agreement clause does not allow any employee of the University to make an individual flexibility arrangement as the only matter that can be subject to such an arrangement pertains to the working times for professional staff. An academic staff cannot make such an arrangement.

[9] The 2013 agreement therefore does not contain a flexibility term as required by the Act. It is therefore necessary that the model flexibility term be taken to be a term of the 2013 agreement but only in respect of academic employees.

[10] The model flexibility clause will be taken to be a term of the 2013 agreement in relation to academic staff.

Discriminatory terms

[11] The 2013 agreement provides the following with respect to parental leave for employees of the university:

[12] The NTEU says, in its Form F18, that clause 67.20 is discriminatory primarily because the partner of a woman who takes maternity leave who becomes the primary care-giver of the child under clause 67.3 is not entitled to the return to work bonus. This position is supported by the ASU, CPSU, CEPU and CFMEU.

[13] For the purpose of this decision I have referred to maternity and adoption and permanent care leave collectively as ‘primary leave’. Partner leave is referred to as such.

[14] Section 195 of the Act states:

[15] In approving an agreement the Fair Work Commission (the Commission) must be satisfied that the agreement contains no unlawful terms (s.194 of the Act). A term which is discriminatory is unlawful. I must be satisfied therefore that the provisions of the agreement, including those complained of by the unions, are not discriminatory.

[16] Mr Pill for the University submits that the matter to be determined is whether a return to work bonus for a person returning from the primary leave is discriminatory where that leave does not extend to a partner returning from partner leave.

[17] Mr Pill says that the partner leave provided for at clause 67.3 of the agreement is not gender specific in that it extends to the partner of the employee taking maternity or adoption and permanent care leave regardless of the gender of the partner or the person taking the primary leave. On its face, he submits, partner leave is available to, and does not distinguish between male and female partners.

[18] Mr Pill submits that the concept of direct discrimination requires the Commission to be satisfied that the term complained of by the unions ‘imposes some detriment or denies some benefit to an employee because of the employee’s gender, or, in the alternative, because of the employee’s carer’s responsibilities.’ 1 Clause 67.20 provides a benefit in the form of the return to work bonus to persons returning from the primary leave. Partner leave is not gender specific and hence the lack of access to that benefit because the person has taken partner leave cannot be discriminatory on the basis of sex.

[19] Mr Pill says that the NTEU is misconceived in its submission that, because male employees who take primary leave (in the form of adoption and permanent care leave) have access to the return to work bonus but birth fathers who take partner leave do not, the clause is discriminatory on the basis of carer’s responsibility. He says that the appropriate comparator to determine if the provision is discriminatory on the grounds of carer’s responsibility is a person who does not have carer’s responsibilities.

[20] At its highest Mr Pill says that, to the extent that persons on partner leave are predominantly birth fathers it could be argued that the provision is indirectly discriminatory.

[21] Despite this Mr Pill submits that purpose of the return to work bonus is to assist birth mothers returning from maternity leave and is therefore objectively reasonable. He cautions however that, in any event it is not clear that s.185 of the Act extends to indirect discrimination (Commissioner for Public Employment, Northern Territory Government 2).

[22] Mr Pill also submits that a provision which provides an entitlement to those on maternity leave is not unlawfully discriminatory (Tung v State of Queensland 3 (Tung)).

[23] Relying on the decision in Tung the University submits that the provision of a return to work bonus for a person on maternity leave that extends to a person on adoption and permanent care leave but does not extend to persons on partner leave is objectively reasonable.

[24] The NTEU, in its Form F18 - Statutory declaration of employee organisation, in relation to an application for approval of an enterprise agreement, said that it:

[25] In a letter addressed to the University and attached to the Form F18, the NTEU says that clause 67.20 is discriminatory because, read as a whole, a staff member’s eligibility for the return to work bonus is confined to those on maternity or adoption and permanent care leave.

[26] The NTEU submits that I should seek an undertaking from the University to preserve the relevant provision from the previous agreement (the 2010 agreement).

[27] The 2010 agreement includes provisions not dissimilar to those outlined at [11] above. It also provides that:

[28] In its submissions the NTEU says that clause 67.20 would not be discriminatory if it only applied to birth mothers. It is discriminatory, the union argues, because it mentions men and women who take adoption and permanent care leave. It is discriminatory because the only employees who cannot access the return to work bonus is birth fathers.

[29] The NTEU submits that the clause in the 2013 agreement would not be

[30] The NTEU submits that birth fathers who take partner leave are discriminated against by the provision when compared to male carers of an adopted child or males who take permanent care leave as it is only the birth fathers who are excluded from access to the return to work bonus and there is no mechanism by which they can take the primary leave as a male partner can by accessing the primary adoption and permanent care leave.

[31] Whilst the NTEU also referred to the decision of Lawler VP referred to by the University they submit that not much turns on the indirect discrimination point as it considers the provision to be directly discriminatory. 6

Consideration

[32] The matter to be determined is if the 2013 agreement, as it has been put to the Commission for approval, discriminates on the basis of sex or family responsibilities. To this extent what was in the 2010 agreement is not relevant. The test must be based on what is in the 2013 agreement and whether it is discriminatory. If it is found to be there is then a question of if and how this may be overcome.

[33] I should observe that a reading of the clause 67.20 in the 2013 agreement does not indicate that the only people who cannot access the return to work bonus are birth fathers.

[34] Clause 67.20 of the 2013 agreement says:

[35] The return to work bonus is clearly only available to:

[36] The return to work bonus is therefore not available to:

[37] The operation of the clause should not be misunderstood through the use of shorthand in the language (that is, the description of those taking partner leave as the ‘birth father’). Whilst, in its effect, those most likely to not receive the return to work bonus are birth fathers who take partner leave, these are not the only employees excluded from access to the provisions of clause 67.20.

[38] In determining if the conditions established by clause 67 of the 2013 agreement are discriminatory it is useful to consider the terms of the Sex Discrimination Act 1984 (Cth). In doing so the question to be answered is if the clause is discriminatory – not whether the clause would be better if it included what was in the 2010 agreement.

Direct discrimination

[39] The Sex Discrimination Act 1984 states:

5. Sex discrimination

[40] That is, discrimination occurs if the University treats a man less favourably than it would a woman.

[41] The treatment at issue in these proceedings is access to the return to work bonus for employees taking partner leave.

[42] It is readily apparent that access to partner leave is not gendered – it is accessible equally to women and men with the only condition being that their partner has taken the primary leave – that is maternity or adoption and permanent care leave.

[43] No person taking partner leave, regardless of sex, is entitled to the return to work bonus.

[44] In this respect it is apparent that birth fathers are not directly discriminated against on the grounds of sex in the application of the provisions relating to parental leave and access to the return to work bonus when compared to women who take partner leave. That is, neither have access to the return to work bonus.

[45] Further, there is no evidence or material before me to indicate that that any condition has been imposed on ‘birth fathers’ that suggests they are disadvantaged. Birth fathers (or any other partner) are not required to take partner leave. No condition has been imposed on them.

[46] The Sex Discrimination Act 1984 provides:

7A Discrimination on the ground of family responsibilities

[47] The NTEU says it is birth fathers who take partner leave who are discriminated against by the 2013 agreement provisions due to their family responsibilities.

[48] The ‘comparator’ in terms of considering the definition in clause 7A of the Sex Discrimination Act 1984 is a person without family responsibilities. The comparator is not, as erroneously put by the NTEU, men who take the adoption and permanent care leave.

[49] When the comparator is correctly identified it is easy to see that there is no discrimination of birth fathers on the grounds of family responsibilities by the operation of clause 67 of the 2013 agreement.

[50] A birth father accessing partner leave (and therefore not having access to the return to work bonus) is not treated less favourably than a person without family responsibilities. A person without family responsibilities is not eligible for partner leave. A birth father does have access to partner leave. There can be no suggestion of discrimination on these grounds.

Indirect discrimination

[51] There is some debate as to whether or not indirect discrimination is encapsulated by s.195 of the Act. In Commissioner for Public Employment, Northern Territory Government 8 and Australian Catholic University Limited9 Lawler VP considered if provisions of the agreements were indirectly discriminatory. He reached the same conclusion in each of the decisions. In Australian Catholic University,,after referring to the distinction between direct and indirect discrimination, his Honour said:

[52] In Shop, Distributive and Allied Employees Association v National Retailers Association and Another (No 2) 11 Tracey J considered if provisions contained in the General Retail Award 2010 which allowed employers to employ school students on a casual basis for less than three hours was indirectly discriminatory. In considering this issue his Honour considered the operation of s.153(1) of the Act which stipulates that a modern award ‘must not include terms that discriminate against an employee because of, or for reasons including, the employee’s race, colour, sex, sexual preference, age, physical or mental disability, marital status, family or carer’s responsibilities, pregnancy, religion, political opinion, national extraction or social origin’12.

[53] Tracey J found that:

[54] Whilst making no definitive finding that s.153(1) (and, by extension, s.195) does not extend to cover indirect discrimination the decision cannot be ignored. On this basis I would have to conclude that s.195 of the Act does not extend to indirect discrimination.

[55] Even if the Act did extend to indirect discrimination, I would find that the provisions in the 2013 agreement do not represent indirect discrimination.

[56] As Lawler VP said ‘reasonableness is a factor in determining whether a clause is indirectly discriminatory.’ 14

[57] The Sex Discrimination Act 1984 states that:

7B. Indirect discrimination: reasonableness test

[58] The University submits that the return to work bonus available to birth mothers and to the person who takes adoption and permanent care leave is a condition that is reasonable in that it acts as an incentive to women (who will be the group in the main who access the primary leave) to return to work following the primary leave. In this respect the University rely on the decision in Tung. In that case Mr Tung sought access to paid maternity leave. In that decision Member Toney QC considered the decision of the Full Court of the Federal Court in Commonwealth Bank of Australia v Human Rights & Equal Opportunity Commission 15 and observed that:

[59] The test of reasonableness was also summarised in McIntyre v Hastings Deering (Australia) Ltd & Anor 17 at [66].

[60] In Tung Member Toney QC, having also considered a number of cases referred to as the Dopking Litigation, 18 concluded that:

[61] The University submits that it is objectively reasonable that the return to work bonus only be available to birth mothers and takers of adoption and permanent care leave.

[62] The matter to determine is not whether it is unreasonable that birth fathers do not get the return to work bonus but whether it is objectively reasonable that the bonus is paid to those returning from maternity leave or adoption and permanent care leave, and not those returning from partner leave.

[63] To this extent the level of disadvantage to those taking partner leave appears to be small. The NTEU did not provide evidence to demonstrate that birth fathers are the ones who will predominantly be away from the workplace for extended periods following the birth of a child and hence run the risk of losing attachment to the workplace or skills such that special measures should be put in place to support their return to work.

[64] Whilst there may be an argument that those taking partner leave are equally as deserving of access to the return to work bonus, as was observed in Tung, this does not affect the reasonableness of the return to work bonus as it applies to those taking the primary leave.

[65] For these reasons I do not consider the provision of the return to work bonus to those on maternity or adoption and permanent care leave to be indirectly discriminatory.

Conclusion on discrimination

[66] For the reasons given above I am satisfied that the agreement does not contain a discriminatory term. The 2013 agreement therefore does not contain an unlawful term.

[67] It is worthwhile observing at this point that the undertaking the NTEU would have me require of the University that it says is necessary to overcome the discrimination appears, on its face, to be discriminatory in that it would only provide access to the return to work bonus to those on partner leave whose partner also worked for the University. So a large cohort of birth fathers whose partner did not work for the University but who did take partner leave following the birth of a child would not, under any circumstances, have access to the return to work bonus. This was not however subject to submissions before me and I make no finding.

[68] I note in passing that when the NTEU realised the provision from the 2010 agreement was not included in the 2013 agreement (after the agreement had gone to vote) the University agreed to a request of the NTEU that the provision be continued in policy at least for the life of the 2013 agreement. The University also placed that commitment in correspondence to the NTEU and affirmed it in the hearing of this matter.

Other matters

[69] In accordance with s.190 of the Act the University has provided a number of undertakings with respect to the 2013 agreement. I have accepted the undertakings so provided.

[70] In accordance with s.191(1) of the Act the undertakings are taken to be a term of the 2013 agreement. A copy of the undertakings is attached as an annexure to this decision.

[71] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[72] The NTEU, CEPU, CPSU, CFMEU, and United Voice, being bargaining representatives for the 2013 agreement, have each given notice under s.183 of the Act that they want the 2013 agreement to cover them. As required by s.201(2), I note that the 2013 agreement covers each organisation.

[73] The 2013 agreement is approved. In accordance with s.54(1) it will operate from 20 February 2014. The nominal expiry date of the 2013 agreement is 30 June 2017.


COMMISSIONER

Appearances:

S. Pill for the University of Melbourne (the Applicant).

S. Kenna for the NTEU.

W. Townsend for the CPSU.

K. Marshall for the CFMEU.

Hearing details:

2014.

Melbourne;

January 16.

 1   Transcript PN109.

 2   [2010] FWAA 9372.

 3   [2013] QCAT 251.

 4   The University of Melbourne Collective Agreement 2010 - clause 75.5.

 5   Transcript PN175.

 6   Transcript PN209.

 7   Partner is defined in clause 5.2 of the 2013 agreement as ‘a person of the opposite or same sex who lives with the staff member on a bona fide domestic basis although he or she may not be legally married to that person (including a former spouse, a de facto spouse and a former de facto spouse)’.

 8   [2010] FWAA 9372.

 9   [2011] FWA 3693.

 10   Ibid [14].

 11   (2012) 205 FCR 227.

 12   The parties in this matter accept the s.153(1) and s.195 are relevantly in the same terms.

 13   Ibid [52]-[56].

 14   Australian Catholic University Limited [2011] FWA 3693 [14].

 15   [1997] FCA 1311.

 16   [2013] QCAT 251 [80]-[86].

 17   [2013] QCAT 695.

 18   Sullivan v Department of Defence(1991) EOC 92-366; Commonwealth v Human Rights & Equal Opportunity Commission (1991) 32 FCR 468; Sullivan v Department of Defence (1992) EOC 92-421; Commonwealth v Human Rights & Equal Opportunity Commission (1993) 46 FCR 191; Dopking v Department of Defence(Unreported, Human Rights and Equal Opportunity Commission, Sir Ronald Wilson, 24 October 1994) (extract at (1995) EOC 92-669); Commonwealth v Human Rights & Equal Opportunity Commission (1995) 63 FCR 74.

 19   [2013] QCAT 251 [90].

Printed by authority of the Commonwealth Government Printer

<Price code O, AE406763  PR547810>

Annexure