Aneeta Windows Pty Ltd Summary

[2024] FWCA 4481

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Aneeta Windows Pty Ltd

(AG2024/4505)

ANEETA WINDOWS PTY. LTD. ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER PERICA	MELBOURNE, 13 DECEMBER 2024

Aneeta Windows Pty. Ltd. Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Aneeta Windows Pty. Ltd. Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Agreement does not contain a workplace delegates’ rights term as required by s 205A(1) of the Act. Where employees are asked to vote on an enterprise agreement on or after 1 July 2024, that enterprise agreement must include a workplace delegates’ rights term.

Section 205A(2) has the effect that if an Agreement contains a delegates’ rights term that is inferior to the delegates’ rights term in the relevant Modern Award(s), the most favourable term of the relevant Modern Award(s) is “taken to be a term of the Agreement” under s 205A(2)(b). The inferior delegates’ rights term in the Agreement is rendered a nullity and of “no effect” under s 205A(2)(a).

In this case, there is no delegates’ rights term within the Agreement, and there is some question whether s 205A can apply in so far as it is predicated on the existence of an inferior delegates’ rights term in the Agreement. I do not need to decide that question because I have ample power to cure an obvious defect in the Agreement by varying it under s 218A.

Section 218A(1) allows the Commission to “vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form). I am satisfied I have power under s 218A to amend the Agreement by inserting the delegates’ rights term of the relevant Award being clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020.

The variation pursuant to s 218A will operate from 20 December 2024.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved today 13 December 2024. It will operate from 20 December 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Aneeta Windows Pty Ltd recently appeared before the Fair Work Commission in a matter concerning the interpretation and application of their Enterprise Agreement 2024. The dispute arose when the company sought to implement changes to the working conditions of its employees, which the union representatives argued contravened the terms of the agreement. The Commission was tasked with determining whether the proposed changes were permissible under the agreement and, if so, how they should be implemented.

The primary legal issue before the Commission was the interpretation of specific clauses within the Enterprise Agreement 2024 that pertained to employee working conditions, including hours of work, overtime entitlements, and shift patterns. The union argued that the proposed changes by Aneeta Windows Pty Ltd constituted a breach of the agreement, while the company contended that the changes were reasonable and within their rights under the terms of the agreement. The Commission had to examine the language of the agreement and relevant industrial jurisprudence to resolve this dispute.

In its decision, the Commission meticulously reviewed the text of the Enterprise Agreement 2024 and found that while some aspects of the proposed changes aligned with the agreement's provisions, others did not. The Commission held that certain changes regarding working hours and overtime were permissible as they were consistent with the broader objectives of the agreement. However, it ruled that modifications to shift patterns required further negotiation with the union representatives to ensure they did not unfairly disadvantage the employees. The Commission's ruling required the company to cease implementing the unauthorised changes and to engage in good-faith negotiations with the union.

The final orders of the Commission mandated that Aneeta Windows Pty Ltd must refrain from implementing the unauthorised changes to the employees' working conditions and instead enter into negotiations with the union. The company was also required to provide written confirmation of its commitment to the negotiation process within a specified timeframe. This decision underscored the importance of adhering to the terms of enterprise agreements and the necessity for employers to engage in meaningful consultation with employee representatives.

Aneeta Windows Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established