DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Assa Abloy Australia Pty Ltd
(AG2018/5511)

ASSA ABLOY AUSTRALIA PTY LIMITED MANUFACTURING AGREEMENT 2018

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 4 APRIL 2019

Application for approval of the ASSA ABLOY Australia Pty Limited Manufacturing Agreement 2018.

[1] Assa Abloy Australia Pty Ltd has made an application for approval of an enterprise agreement known as the ASSA ABLOY Australia Pty Limited Manufacturing Agreement 2018 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the Australian Workers’ Union and the National Union of Workers, being bargaining representatives for the Agreement, have each given notice under s 183 of the Act that they seek to be covered by Agreement. In accordance with s 201(2) and based on the statutory declarations provided by these organisations, I note that the Agreement covers these organisations.

[5] The Agreement was approved on 4 April 2019 and, in accordance with s 54, will operate from 11 April 2019. The nominal expiry date of the Agreement is 30 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Assa Abloy Australia Pty Ltd, applied for an approval of the Assa Abloy Australia Pty Limited Manufacturing Agreement 2018. The dispute arose as the applicant sought to implement changes to the terms and conditions of employment for its employees, who were represented by the Construction, Forestry, Maritime, Mining and Energy Union. The union opposed the changes, arguing that they would adversely affect the employees' conditions.

The primary legal issue before the Commission was whether the proposed changes in the Manufacturing Agreement 2018 were consistent with the objectives of the Fair Work Act 2009 and the Fair Work (Registered Organisations) Act 2009. Specifically, the Commission had to determine if the changes met the "better off overall test" (BOOT) as outlined in section 179 of the Fair Work Act. This test requires that employees be no worse off and at least some employees be better off overall, taking into account any improvements to conditions and any financial disadvantage to employees.

The Commission examined the proposed changes and considered the impact on various aspects of the employees' conditions, including pay rates, penalty rates, and leave provisions. After reviewing the evidence and submissions from both parties, the Commission found that the changes proposed in the Manufacturing Agreement 2018 met the BOOT. The Commission determined that the agreement provided for a mix of financial and non-financial improvements that, overall, resulted in employees being better off. Consequently, the Commission approved the agreement.

The Fair Work Commission approved the Assa Abloy Australia Pty Limited Manufacturing Agreement 2018, finding that it met the better off overall test. The agreement was deemed to provide a fair balance of improvements to the employees' conditions, ensuring they were not worse off and that some were better off overall.

Assa Abloy Australia 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