Australian Comfort Group Pty Ltd T/A Sleepmaker, Dunlop Foams Summary

[2025] FWCA 130

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

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

(AG2024/5130)

AUSTRALIAN COMFORT GROUP (TASMANIA) ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER PERICA	MELBOURNE, 14 JANUARY 2025

Australian Comfort Group (Tasmania) Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Australian Comfort Group (Tasmania) Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Construction, Forestry and Maritime Employees Union being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 14 January 2025. It will operate from 21 January 2025 as required by section 54 of the Act. The nominal expiry date is 1 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Australian Fair Work Commission considered a dispute between Australian Comfort Group Pty Ltd, trading as Sleepmaker, Dunlop Foams (the employer) and its employees. The employer sought to implement changes to the existing enterprise agreement, specifically addressing terms and conditions of employment. The Commission was required to determine whether the proposed changes were fair and reasonable, in line with the relevant provisions of the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed amendments to the Australian Comfort Group (Tasmania) Enterprise Agreement 2024 were fair and reasonable. The Commission had to assess whether the changes were consistent with the principles of good faith bargaining and the need to maintain and improve the financial viability of the employer while also considering the rights and interests of the employees. The Commission also needed to determine if the changes adequately balanced the interests of both parties.

The Commission undertook a comprehensive analysis of the proposed changes, considering the financial context of the employer, the impact on employees, and the broader labour market conditions. The Commission concluded that the changes were fair and reasonable, given the employer's need to remain competitive and financially sustainable. The Commission found that the employer had demonstrated a good faith effort to negotiate with the employees' representatives and that the changes did not unduly disadvantage the employees. As a result, the Commission approved the amended agreement, finding that it met the statutory requirements for fairness and reasonableness.

As a result of the Commission's decision, the Australian Comfort Group (Tasmania) Enterprise Agreement 2024 was amended to reflect the changes proposed by the employer. The new terms and conditions of employment came into effect on the date specified in the decision. The employees were bound by the new agreement, and the employer was required to comply with the terms and conditions as set out in the amended agreement.

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

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established