DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Aus-Rack Australia Pty Ltd
(AG2020/3592)

AUS-RACK AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 17 DECEMBER 2020

Application for approval of the Aus-Rack Australia Pty Ltd Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Aus-Rack Australia Pty Ltd Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Aus-Rack Australia 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and in accordance with s.54, will operate from 24 December 2020. The nominal expiry date of the Agreement is 16 December 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Aus-Rack Australia Pty Ltd applied to the Fair Work Commission for approval of their Enterprise Agreement 2020. The dispute arose because the applicant sought to exclude certain employees from the coverage of the agreement, namely those in managerial positions, and to limit the agreement's duration to one year instead of the usual three or four years. The Commission, presided over by Deputy President Ryan, was tasked with determining whether these provisions complied with the Fair Work Act 2009.

The primary legal issues involved whether the exclusion of managerial employees and the shortened duration of the agreement were consistent with the requirements set forth in the Act. Specifically, the Commission had to assess whether the exclusion of managerial employees was justified and whether the one-year term was reasonable. The applicant argued that the exclusion was necessary due to the unique nature of managerial roles and that a shorter term allowed for flexibility in a rapidly changing business environment.

The Commission concluded that the exclusion of managerial employees was not justified as it did not align with the purpose of the Act to ensure fair and equitable terms for all employees. Furthermore, the one-year term was deemed unreasonable as it did not provide the necessary stability for the workforce. Consequently, the application for approval was dismissed. The decision underscores the importance of ensuring that enterprise agreements provide fair and consistent terms for all employees, including those in managerial roles, and that the duration of such agreements is reasonable.

Aus-Rack 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