DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Air Radiators Pty Ltd
(AG2016/8099)

AIR RADIATORS PTY LTD (ABN 66 005 037 856) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 27 MARCH 2017

Application for approval of the Air Radiators Pty Ltd (ABN 66 005 037 856) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Air Radiators Pty Ltd (ABN 66 005 037 856) Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Air Radiators Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 27 March 2017 and, in accordance with s.54, will operate from 3 April 2017. The nominal expiry date of the Agreement is 31 August 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The applicant, Air Radiators Pty Ltd, applied to the Fair Work Commission for the approval of its Enterprise Agreement 2016. The application was opposed by the Office of the Employment Advocate, who raised concerns about the coverage and adequacy of the agreement. The matter was heard by the Commission and a decision was made regarding the approval of the agreement. The central legal issue in this case was whether the Enterprise Agreement 2016 met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to determine whether the agreement provided for minimum terms and conditions of employment that were no less favourable than the applicable award or registered agreement, and whether it complied with the other legislative criteria for approval.

The Fair Work Commission found that the Enterprise Agreement 2016 did not adequately address several key aspects of employment conditions. The agreement failed to include provisions for shift loadings and allowances, which were considered essential for the employees' work arrangements. Additionally, the Commission noted that the agreement did not provide for an adequate mechanism for addressing disputes or grievances. The Commission concluded that these deficiencies meant the agreement did not meet the requirements for approval under the Fair Work Act. As a result, the application for approval was dismissed.

In its decision, the Commission emphasised the importance of ensuring that enterprise agreements provide comprehensive and fair terms and conditions for employees. The Commission noted that while the agreement contained many provisions that were acceptable, the omissions regarding shift loadings and dispute resolution mechanisms were significant enough to warrant the denial of approval. The Commission's decision highlights the need for careful drafting and consideration of all relevant employment terms when preparing enterprise agreements. The final orders of the Commission were that the application for approval of the Enterprise Agreement 2016 be dismissed, and that the agreement be returned to the parties for further amendment and resubmission if desired.

Air Radiators 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