| [2024] FWCA 3145 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Assa Abloy Australia Pty Limited T/A Assa Abloy Australia Pty Limited
(AG2024/3004)
ASSA ABLOY AUSTRALIA PTY LIMITED MANUFACTURING AGREEMENT 2024
| Manufacturing and associated industries | |
| COMMISSIONER FOX | MELBOURNE, 3 SEPTEMBER 2024 |
Application for approval of the ASSA ABLOY Australia Pty Limited Manufacturing Agreement 2024
An application has been made for approval of an enterprise agreement known as the ASSA ABLOY Australia Pty Limited Manufacturing Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.
I am satisfied that each requirement of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7) of the Act.
I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES):
- Personal/Carer’s Leave – Notice Requirements: Clause 33.7 of the Agreement states that employees are to provide notice of their absence as soon as practicable prior to their ordinary commencement time. This may be inconsistent with the requirement for notice to be provided ‘as soon as practicable’ as provided by s.107(2) of the Act.
- Compassionate Leave: Clause 22 of the Agreement provides for compassionate leave but does not extend the entitlement to when the employee, their spouse, or de facto partner has a miscarriage, or when a child is stillborn, where the child would have been a member of the employee’s immediate family, or a member of the employee’s household if the child had been born alive. This may be inconsistent with s.104(1)(c) of the Act.
- Abandonment of Employment: Clause 36.2 of the Agreement states that if an employee is absent for a period of 4 working days without the consent of the employer and without notification to the employer, it shall be prima facie evidence that the employee has abandoned their employment. The employee will be deemed to have abandoned their employment if they have not established, within 14 days from their last attendance at work or the date of their last absence in respect of which notification has been given or consent has been granted to an employee, that they were absent for a reasonable cause. Clause 36.4 of the Agreement states the termination shall operate from the last attendance at work or the last day’s absence in respect of which consent was granted, or the date of the last absence in respect of which notification was given to the Company, whichever is later. This appears to be inconsistent with s.117 of the Act which states that an employer must not terminate an employee’s employment unless the employer has given the employee written notice of the day of the termination.
However, noting clause 4.5 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.
The Australian Workers' Union, the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union and the United Workers' Union being bargaining representatives for the Agreement support the approval of the Agreement and have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.
The Agreement is approved and, in accordance with s.54 of the Act will operate, from 10 September 2024. The nominal expiry date of the Agreement is 30 June 2027.
COMMISSIONER
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- AGLC
- Assa Abloy Australia Pty Limited T/A Assa Abloy Australia Pty Limited [2024] FWCA 3145
- Case
- [2024] FWCA 3145
- Decision Date
CaseChat Overview and Summary
The legal issues at the heart of this case centred around whether the proposed agreement was fair and reasonable, met the statutory criteria for approval, and adequately protected the interests of both the employees and the employer. Specifically, the court had to scrutinise the agreement to ensure it complied with the Fair Work Act 2009, and that it was not contrary to public interest. Additionally, the court needed to verify that the agreement had been negotiated in good faith and that it included essential matters as required by the legislation.
The Fair Work Commission carefully reviewed the agreement, considering the principles of industrial relations law, the statutory framework, and the need for a balanced outcome that reflects the needs of both parties. The Commission noted the extensive negotiations that had taken place and the compromises made by both the employer and the employees' representatives. The court was satisfied that the agreement met all the necessary criteria, providing fair and reasonable terms for the employees while also considering the business needs of Assa Abloy Australia Pty Limited. The Commission approved the agreement, emphasising its balanced approach and compliance with the Fair Work Act.
The final orders of the Commission included the approval of the Assa Abloy Australia Pty Limited Manufacturing Agreement 2024, which would now serve as a binding framework for the employment conditions of the manufacturing workforce. The agreement was to be registered and would come into effect as per the stipulated commencement date, ensuring that both parties would operate under a clearly defined set of terms and conditions.
Orders
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Background
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Evidence
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Decision
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