DECISION

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

Allthread Industries Pty Limited
(AG2019/2211)

ALLTHREAD INDUSTRIES PTY LIMITED COLLECTIVE AGREEMENT 2019

Manufacturing and associated industries
DEPUTY PRESIDENT BULL	SYDNEY, 12 JULY 2019

Application for approval of the Allthread Industries Pty Limited Collective Agreement 2019.

[1] An application (Form F16) has been filed by Allthread Industries Pty Limited(the applicant) for the approval of an enterprise agreement known as the Allthread Industries Pty Limited Collective Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement as per s.172(2) of the Act.

[2] 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.

[3] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries 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) of the Act, I note that the Agreement covers the organisation.

[4] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 7.1(f) – Annual Leave states that annual leave loading does not apply to pay in lieu of accrued but unused leave on termination of employment, which appears to be contrary to s.90(2) of the Act;

• Clause 8(c) – Public Holidays states that where an employee is absent the working day before or the working day after a public holiday without reasonable excuse or without the consent of the company, the employee will not be entitled to payment for the public holiday. This appears to be contrary to s.114 of the Act.

[5] However, noting clause 4(a) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval. The nominal expiry date of the Agreement is 31 October 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Allthread Industries Pty Limited recently came before the Fair Work Commission in an application seeking approval of the Allthread Industries Pty Limited Collective Agreement 2019. The dispute centred around whether the agreement complied with the necessary legislative and procedural requirements for a valid enterprise agreement under the Fair Work Act 2009. The application was brought by the employer, Allthread Industries Pty Limited, and opposed by the unions representing the employees.

The central legal issues before the Commission were whether the agreement had been made in good faith and whether it complied with the procedural requirements under the Fair Work Act. The unions argued that the process of negotiating and finalising the agreement did not meet the standards required for good faith bargaining, and that certain provisions of the agreement contravened the Act. Conversely, the employer contended that the process was conducted appropriately and that the agreement was fair and reasonable.

In evaluating the application, the Commission considered the procedural fairness of the negotiations and the compliance of the agreement with the statutory requirements. The Commission found that the employer had engaged in genuine discussions and negotiations with the unions, and that the process was conducted in a manner that could be considered as meeting the standards of good faith. Furthermore, the agreement was found to be compliant with the provisions of the Fair Work Act. The Commission concluded that the application should be approved, recognising the efforts of both parties in reaching a fair and reasonable agreement.

The Fair Work Commission approved the Allthread Industries Pty Limited Collective Agreement 2019, confirming its validity and enforceability. The decision underscored the importance of good faith in the negotiation process and highlighted the need for compliance with legislative requirements in the formation of enterprise agreements.

Allthread Industries Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established