DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Defence Apparel Pty Ltd
(AG2021/4994)

AUSTRALIAN DEFENCE APPAREL PTY LTD ENTERPRISE AGREEMENT 2021.

Clothing industry
COMMISSIONER YILMAZ	MELBOURNE, 19 MAY 2021

Application for approval of the Australian Defence Apparel Pty Ltd Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Australian Defence Apparel Pty Ltd Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Defence Apparel 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] The Construction, Forestry, Maritime, Mining & 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, will operate from 26 May 2021. The nominal expiry date of the Agreement is 28 April 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Australian Defence Apparel Pty Ltd was the subject of an application to the Fair Work Commission for the approval of their Enterprise Agreement 2021. The matter involved the company and its employees, represented by the Australian Manufacturing Workers Union. The dispute centred around the terms and conditions outlined in the proposed agreement, including wages, hours of work, and other employment-related matters. The Fair Work Commission was tasked with assessing whether the agreement met the statutory requirements under the Fair Work Act 2009 and whether it was in the best interests of the employees.

The legal issues before the Commission involved determining if the proposed agreement complied with the mandatory provisions of the Fair Work Act, such as minimum wage rates, penalty rates for different types of work, and provisions for annual leave and maximum weekly hours. Additionally, the Commission had to consider whether the agreement contained terms that unfairly disadvantaged employees, and whether it provided for proper mechanisms for dispute resolution. The company argued that the agreement was fair and reasonable, while the union contended that it did not sufficiently protect the employees' interests.

After thorough examination of the evidence and arguments presented, the Fair Work Commission found that the proposed agreement contained several non-compliant provisions. Specifically, the Commission noted that the agreement did not adequately address minimum wage rates for certain classifications and failed to provide sufficient annual leave entitlements. Furthermore, the agreement lacked clear provisions for resolving disputes between the employer and employees. Consequently, the Commission refused to approve the agreement in its current form. The company was given an opportunity to amend the agreement to address these issues and resubmit it for approval.

The Fair Work Commission ordered that the Australian Defence Apparel Pty Ltd Enterprise Agreement 2021 be returned to the parties for amendment. The company was instructed to revise the agreement to ensure compliance with the Fair Work Act and to include provisions that adequately protected employees' rights. The union was given the opportunity to review the amended agreement and provide feedback. The Commission set a deadline for the resubmission of the revised agreement, after which it would be reconsidered for approval.

Australian Defence Apparel 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