DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Comfort Group Pty Ltd T/A Sleepmaker and Dunlop Foams
(AG2017/1300)

AUSTRALIAN COMFORT GROUP AND NATIONAL UNION OF WORKERS NEWSOUTH WALES BRANCH ENTERPRISE AGREEMENT 2016 - 2019

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COMMISSIONER WILSON	MELBOURNE, 18 MAY 2017

Application for approval of the Australian Comfort Group and National Union of Workers New South Wales Branch Enterprise Agreement 2016 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Australian Comfort Group and National Union of Workers New South Wales Branch 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 Sleepmaker and Dunlop Foams. 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 National Union of Workers 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 25 May 2017. The nominal expiry date of the Agreement is 17 May 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application by the Australian Comfort Group Pty Ltd trading as Sleepmaker, and the National Union of Workers New South Wales Branch for approval of their Enterprise Agreement 2016-2019. The dispute arose from the negotiation and proposed terms of the enterprise agreement, which the applicants sought to have formally approved by the Commission. The Australian Comfort Group Pty Ltd, a manufacturer and retailer of mattresses, bedding and furniture, and the National Union of Workers New South Wales Branch, representing the employees, sought to have their enterprise agreement approved under section 176 of the Fair Work Act 2009. The legal issues before the Commission centred on whether the proposed agreement met the requirements for approval under the Fair Work Act, particularly in relation to the "better off overall test" (BOOT), the "no disadvantage test" and the "public interest test." The Commission needed to determine if the agreement provided employees with conditions at least as good as those provided by the applicable award or registered agreement, did not disadvantage employees in comparison to the applicable award, and was in the public interest.

The Commission began its analysis by assessing whether the proposed agreement satisfied the BOOT, which requires that employees be at least as well off under the agreement as they would be under the applicable award. The Commission found that the agreement provided employees with a range of benefits, including annual leave loading, shift loading, penalty rates, and overtime provisions that were at least as good as those provided by the applicable award. The Commission then considered the no disadvantage test, which requires that the agreement not place employees in a worse position than if the applicable award applied. The Commission determined that the agreement did not place employees in a worse position than if the award applied, as the agreement provided for similar or better conditions in most respects. Finally, the Commission assessed the public interest test, which requires that the agreement not be contrary to the public interest. The Commission found that the agreement did not raise any public interest concerns, as it did not contain any provisions that were likely to have a detrimental effect on the economy or on the operation of businesses.

Based on its analysis, the Commission approved the enterprise agreement, finding that it met all the requirements for approval under the Fair Work Act. The Commission noted that the agreement provided employees with a range of benefits and protections, and that it did not place employees in a worse position than if the applicable award applied. The Commission also noted that the agreement did not raise any public interest concerns. The Commission's decision was therefore in favour of the applicants, and the enterprise agreement was approved.

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

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established