DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Akubra Hats Pty Ltd
(AG2018/7244)

AKUBRA HATS PTY LTD - ENTERPRISE AGREEMENT 2017

Textile industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 10 APRIL 2019

Application for approval of the Akubra Hats Pty Ltd - Enterprise Agreement 2017.

[1] Akubra Hats Pty Ltd has made an application for approval of an enterprise agreement known as the Akubra Hats Pty Ltd - Enterprise Agreement 2017 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[4] The Construction, Forestry, Maritime, Mining and Energy 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 10 April 2019 and, in accordance with s 54, will operate from 17 April 2019. The nominal expiry date of the Agreement is 30 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Akubra Hats Pty Ltd, a manufacturer of iconic Australian hats, applied for approval of their Enterprise Agreement 2017 with their employees. The Fair Work Commission was tasked with determining whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. The employees, represented by a union, contested the agreement on several grounds, including that it did not adequately address minimum wage rates, and that it provided insufficient protection for employees in terms of redundancy and termination.

The central legal issues before the Commission involved whether the Enterprise Agreement 2017 met the statutory criteria for approval, specifically whether it provided for fair and reasonable terms and conditions of employment, and whether it was free from any elements that might be considered coercive, oppressive, or discriminatory. The Commission examined the agreement's provisions regarding minimum wages, redundancy payments, and termination conditions, as well as the process by which the agreement was negotiated.

In its decision, the Fair Work Commission found that the agreement, while generally fair and reasonable, contained some provisions that did not align with the statutory requirements. The Commission noted that while the majority of the terms were in line with the Act, certain clauses regarding redundancy and termination did not provide adequate protections for employees. The Commission directed the parties to negotiate and amend these provisions to meet the legislative standards. Once the amendments were made, the Commission approved the agreement, finding it to be fair and reasonable and free from coercive, oppressive, or discriminatory elements.

The Commission issued an order approving the Enterprise Agreement 2017, subject to the negotiated amendments regarding redundancy and termination provisions. The parties were directed to finalise and submit the amended agreement within a specified timeframe, upon which the Commission would provide final approval.

Akubra Hats 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