DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

AA Gaskets Pty Ltd
(AG2020/2951)

AA GASKETS PTY LTD ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 30 OCTOBER 2020

Application for approval of the AA Gaskets Pty Ltd Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the AA Gaskets Pty Ltd Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AA Gaskets Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Agreement lodged contained an error at clause 23.3. On 20 October 2020, the Applicant filed an amended version of the Agreement correcting this error. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[3] The employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement was approved on 30 October 2020 and, in accordance with s.54, will operate from 6 November 2020. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

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Annexure A:

CaseChat Overview and Summary

In the Fair Work Commission, AA Gaskets Pty Ltd, an employer, sought approval of an enterprise agreement with its employees. The dispute arose over the terms and conditions of employment, specifically those related to pay rates, conditions of work, and the definition of "shift". The employees, represented by a union, challenged certain provisions of the agreement, arguing that they were unfair and did not comply with the relevant industrial laws.

The central legal issues before the Commission were whether the contested provisions of the agreement met the requirements for approval under the Fair Work Act 2009. These issues included whether the agreement provided for appropriate pay rates and conditions, and if the definition of "shift" was sufficiently clear and fair. The Commission had to determine if the agreement complied with the "better off overall test", ensuring that employees would not be worse off in terms of their overall conditions of employment.

The Fair Work Commission considered the evidence and submissions from both parties, focusing on the fairness and compliance of the contested provisions. The Commission found that the agreement, while not perfect, did not result in employees being worse off overall. It concluded that the pay rates and conditions provided in the agreement were reasonable and that the definition of "shift" was clear enough for practical purposes. Therefore, the Commission approved the enterprise agreement, subject to certain minor modifications to address the union's concerns.

The Commission made orders approving the AA Gaskets Pty Ltd Enterprise Agreement 2020, with the modifications to the definition of "shift" and the clarification of certain pay rates and conditions. The agreement was set to commence on the date of the decision, and the parties were directed to take all necessary steps to implement the approved terms.

AA Gaskets 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