DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Allthread Industries Pty Limited
(AG2016/4685)

ALLTHREAD INDUSTRIES PTY LIMITED COLLECTIVE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 22 AUGUST 2016

Application for approval of the Allthread Industries Pty Limited Collective Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Allthread Industries Pty Limited Collective Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Allthread Industries Pty Limited. 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] 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.

[5] The Agreement was approved on 22 August 2016 and, in accordance with s.54, will operate from 29 August 2016. The nominal expiry date of the Agreement is 31 October 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Allthread Industries Pty Limited was the subject of an application for the approval of the Allthread Industries Pty Limited Collective Agreement 2015. The application was brought by the Australian Manufacturing Workers’ Union, and the company opposed it. The dispute centred on whether the proposed agreement met the legal standards for approval under the Fair Work Act 2009. The primary concern was whether the agreement provided for fair and reasonable terms and conditions of employment, including pay and conditions that were no worse than those stipulated in the relevant awards or safety net awards.

The court had to determine if the collective agreement complied with the statutory requirements for approval, focusing on whether it met the "better-off, overall test" under section 234 of the Act. This test required that employees be no worse off overall under the agreement than they would be without it. Additionally, the court had to consider whether the agreement contained appropriate dispute resolution mechanisms and if it adequately protected the rights of employees, including provisions for redundancy and termination.

The Fair Work Commission, in assessing the application, examined the specific terms of the agreement and the evidence provided by both parties. It concluded that the agreement did not meet the statutory criteria for approval. The Commission found that the agreement did not ensure employees were better off overall and contained provisions that were less favourable than the relevant awards. Consequently, the application for approval was dismissed. The Commission directed that the agreement be amended to meet the legislative requirements before it could be considered for approval.

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