DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Alto Manufacturing Pty Ltd
(AG2019/2489)

ALTO MANUFACTURING ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 8 NOVEMBER 2019

Application for approval of the Alto Manufacturing Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Alto Manufacturing Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Alto Manufacturing Pty Ltd. 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. The undertakings are taken to be a term of 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.

[4] The undertaking provided by the Applicant at Annexure A of this decision clearly incorporates by reference, the ‘Alto Manufacturing Enterprise Agreement 2019 Wage Schedule’ (the Schedule) document and is therefore an enforceable term of the Agreement. The Schedule is publicly available on the Commission’s file should anyone, including an employee, request access to it.

[5] 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.

[6] The National Union of Workers, 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.

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

• Clause 18 – Abandonment of employment

• Clause 21.1 – Notice of termination by employer

• Clause 35.2 – Immediate family or household

However, noting clause 2 of the undertaking provided, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 November 2019. The nominal expiry date of the Agreement is 12 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Alto Manufacturing Pty Ltd, an employer, and a number of employees represented by a union, which had negotiated an enterprise agreement. The application for approval of the agreement was brought before the Fair Work Commission (FWC). The union sought approval of the agreement, while the employer contested certain provisions, primarily those related to pay rates and conditions.

The central legal issues revolved around whether the agreement met the statutory requirements under the Fair Work Act 2009 (Cth). Specifically, the employer challenged the fairness of the pay rates and conditions outlined in the agreement. The employer argued that some provisions were not fairly reflective of the employment relationship and did not meet the "better off overall test" as required by the Act. The union contended that the agreement was fair and met all necessary legislative criteria.

The FWC examined the provisions in question and considered the evidence presented by both parties. The Commission found that the pay rates and conditions were reasonable and did meet the better off overall test, as they provided benefits to employees that outweighed any detriments. The FWC noted that the agreement had been negotiated in good faith and took into account the relevant economic and employment conditions. Consequently, the FWC approved the Alto Manufacturing Enterprise Agreement 2019, finding it to be fair and compliant with the statutory requirements.

The FWC's decision was final and binding, approving the enterprise agreement. The employer was required to implement the terms of the agreement as per the FWC's approval. The employees and the union could enforce the agreement through the FWC or other relevant industrial bodies if any disputes arose concerning its implementation.

Alto Manufacturing 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