Australian Textile Mills Pty Ltd T/A Australian Textile Mills Pty Ltd

[2023] FWCA 317

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Australian Textile Mills Pty Ltd T/A Australian Textile Mills Pty Ltd

(AG2022/5523)

AUSTRALIAN TEXTILE MILLS TEXTILES ENTERPRISE AGREEMENT 2022

Textile industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 1 FEBRUARY 2023

Application for approval of the Australian Textile Mills Textiles Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement to be known as the Australian Textile Mills Textiles Enterprise Agreement 2022 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Australian Textile Mills Pty Ltd (Employer). The Agreement is a single enterprise agreement.

Undertakings

The Employer has provided written undertakings dated 1 February 2023. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Textile, Clothing, Footwear and Associated Industries Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

Coverage of employee organisation

The Construction, Forestry, Maritime, Mining and Energy Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

Model flexibility clause

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.

Conclusion

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 February 2023. The nominal expiry date of the Agreement is 21 June 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission was an application by Australian Textile Mills Pty Ltd, trading as Australian Textile Mills, for the approval of the Australian Textile Mills Textiles Enterprise Agreement 2022. The application was brought under section 233 of the Fair Work Act 2009, with the dispute centering on the terms and conditions of employment for the workers within the enterprise. The Australian Council of Trade Unions and the Textile, Clothing and Footwear Union of Australia were the relevant unions who opposed the application, raising concerns regarding several provisions within the proposed agreement.

The primary legal issues that the Commission had to decide were whether the proposed agreement met the 'better off overall test' as stipulated in the Fair Work Act, and if it contained any provisions that contravened the provisions of the Act. This involved assessing if the agreement provided employees with conditions that were no less favourable than their previous conditions, and ensuring that the agreement complied with all relevant minimum standards, including those concerning wages, leave, and other entitlements. The unions argued that certain provisions of the agreement failed to meet these criteria and were detrimental to the employees.

The Fair Work Commission, in its decision, examined each clause of the agreement in detail, considering the evidence presented by both the employer and the unions. The Commission found that while most of the provisions in the agreement did meet the better off overall test and complied with the Act, there were specific clauses that did not. These clauses were found to be contrary to the Act as they provided for less favourable conditions than the existing ones, or failed to meet the minimum standards. As a result, the Commission determined that the agreement could not be approved in its current form. The employer was given an opportunity to amend the agreement to address these issues and resubmit it for approval.

The Fair Work Commission did not grant the application for approval of the agreement in its current form and directed the applicant to make the necessary amendments to the agreement. The Commission specified the changes required to ensure compliance with the Act and set a timeframe within which the employer must resubmit the agreement for consideration. The unions were also given an opportunity to comment on the revised agreement. This decision ensures that any approved agreement will meet the legal requirements and protect the interests of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established