Australian Textile Mills Pty Ltd

[2023] FWCA 1690

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Australian Textile Mills Pty Ltd

(AG2023/1584)

AUSTRALIAN TEXTILE MILLS PTY LIMITED WORKSHOP ENTERPRISE AGREEMENT 2022

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 13 JUNE 2023

Application for approval of the Australian Textile Mills Pty Limited Workshops Enterprise Agreement

An application has been made for approval of an enterprise agreement known as the Australian Textile Mills Pty Limited Workshops Enterprise Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Textile Mills Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 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.

I note that the definition of a shiftworker in the Agreement in clause 33.2 meets the required definition in the Manufacturing and Associated Industries and Occupations Award 2020 but does not meet the definition in the Plumbing and Fire Sprinklers Award 2020.

On 8 June 2023, the employer provided submissions that they do not currently have any employees that meet either definition and that if they do in the future will ensure compliance with the Act, National Employment Standards and relevant Awards.

On the basis that the Awards are incorporated, I am satisfied that should an employee meet the definition of a shiftworker as per the Awards, they would be provided the benefits afforded to them under the relevant Award and the Act.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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.

The Australian Manufacturing Workers' 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.

The Agreement is approved and in accordance with s.54, will operate from 20 June 2023. The nominal expiry date of the Agreement is 14 May 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Textile Mills Pty Limited was the applicant in the Fair Work Commission, seeking approval of the Australian Textile Mills Pty Limited Workshops Enterprise Agreement. The applicant and the respondents, the Textile, Clothing and Footwear Union of Australia, had reached an agreement under the Fair Work Act 2009. The dispute involved whether the agreement met the requirements for approval under the Fair Work Act. The parties had reached an agreement on the terms and conditions of employment for the workers, but the union sought to have some terms removed or amended.

The legal issues before the Commission were whether the agreement was in accordance with the Fair Work Act and whether it met the requirements for registration under section 231 of the Act. The union argued that some terms of the agreement were contrary to public policy and not genuinely agreed upon by the parties. The union also argued that the agreement did not meet the "better off overall test" under section 231 of the Act.

The Commission found that the agreement was in accordance with the Fair Work Act and met the requirements for registration. The Commission rejected the union's argument that some terms of the agreement were contrary to public policy, finding that the terms were not inconsistent with any relevant legislation or public policy. The Commission also found that the agreement met the "better off overall test" under section 231 of the Act, as the agreement provided for a range of benefits to the employees, including pay increases and improved conditions of employment. The Commission approved the agreement and registered it under section 232 of the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established