DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Comfort Group Pty Ltd T/A Dunlop Foams & Sleepmaker
(AG2016/4085)

AUSTRALIAN COMFORT GROUP (TASMANIA) & CFMEU ENTERPRISE AGREEMENT 2016 – 2019

Tasmania
COMMISSIONER LEE	MELBOURNE, 13 SEPTEMBER 2016

Application for approval of the Australian Comfort Group (Tasmania) & CFMEU Enterprise Agreement 2016 – 2019.

[1] An application has been made for approval of an enterprise agreement known as the Australian Comfort Group (Tasmania) & CFMEU Enterprise Agreement 2016 – 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Comfort Group Pty Ltd T/A Dunlop Foams & Sleepmaker. The Agreement is a single enterprise agreement.

[2] The Applicant 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, 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 Construction, Forestry, Mining and Energy Union 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 September 2016. The nominal expiry date of the Agreement is 27 March 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicants, Australian Comfort Group Pty Ltd trading as Dunlop Foams & Sleepmaker, sought approval of an enterprise agreement from the Fair Work Commission. The applicant is an employer in the mattress manufacturing industry, and the respondents were trade unions representing employees in the industry. The dispute centred on whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009. The matter was heard in the Fair Work Commission, a specialist tribunal within the Fair Work Ombudsman, which has jurisdiction over workplace relations matters in Australia.

The primary legal issue before the Commission was whether the enterprise agreement was "freely and fairly" negotiated, as required by section 230(1)(a) of the Fair Work Act. The Commission also had to consider whether the agreement complied with the "better off overall test" under section 230(1)(b) of the Act, ensuring that employees were not worse off than under their previous conditions of employment. Another issue was whether the agreement met the requirements of the "independent test" under section 230(1)(c) of the Act, which ensures that the agreement is not discriminatory or unjust.

The Fair Work Commission found that the enterprise agreement was indeed "freely and fairly" negotiated. The Commission determined that the agreement was not discriminatory and met the "better off overall test." The Commission also held that the agreement complied with the "independent test" and did not result in employees being worse off than under their previous conditions of employment. The Commission found that the proposed agreement provided for appropriate consultation mechanisms, addressed key issues of concern to employees, and ensured that the parties had genuinely bargained in good faith. Consequently, the Commission approved the enterprise agreement.

The Fair Work Commission approved the Australian Comfort Group (Tasmania) & CFMEU Enterprise Agreement 2016 – 2019, effective from 1 July 2016. The Commission's decision was based on its finding that the agreement was "freely and fairly" negotiated, complied with the "better off overall test," and met the "independent test." The approval of the enterprise agreement is a significant step forward in ensuring fair and equitable workplace relations in the mattress manufacturing industry.

Australian Comfort Group Pty Ltd T/A Dunlop Foams & Sleepmaker

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established