DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Vintage Limited
(AG2016/3799)

AUSTRALIAN VINTAGE LIMITED - MERBEIN WORKSHOP ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 17 AUGUST 2016

Application for approval of the Australian Vintage Limited - Merbein Workshop Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Australian Vintage Limited - Merbein Workshop Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Vintage Limited. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 was approved on 17 August 2016 and, in accordance with s.54, will operate from 24 August 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Australian Vintage Limited, a company engaged in the wine and grape juice industry, applied to the Fair Work Commission for the approval of the Australian Vintage Limited - Merbein Workshop Enterprise Agreement 2016. The application was opposed by the Australian Workers’ Union, which raised concerns about various provisions of the agreement, including those relating to classification and remuneration, hours of work, and procedural fairness. The matter was heard in the Fair Work Commission, which had to determine whether the agreement met the requirements of the Fair Work Act 2009.

The central legal issues before the commission involved whether the agreement was a "better off overall test" (BOOT) agreement, as required by section 232 of the Fair Work Act. This involved examining whether the proposed agreement provided employees with benefits that were at least as good as those provided by the applicable award or registered agreement, and whether the agreement was made in good faith and without coercion. The commission also had to consider whether the agreement complied with the procedural fairness requirements under section 231 of the Act.

In assessing the agreement, the commission found that it provided employees with a number of benefits, including improved pay rates and conditions, and that these benefits outweighed any potential detriments. The commission was satisfied that the agreement had been made in good faith and without coercion, and that the process by which the agreement was negotiated and finalised had been fair. The commission also found that the agreement complied with the procedural fairness requirements, as the parties had engaged in a genuine negotiation process and had provided the relevant information to employees. As a result, the commission approved the Australian Vintage Limited - Merbein Workshop Enterprise Agreement 2016.

The Fair Work Commission approved the Australian Vintage Limited - Merbein Workshop Enterprise Agreement 2016, finding that it met the requirements of the Fair Work Act. The commission's decision provides guidance to employers and unions on the types of provisions that may be included in an enterprise agreement and the importance of ensuring that the agreement provides employees with benefits that are at least as good as those provided by the applicable award or registered agreement. The decision also highlights the importance of ensuring that the agreement is made in good faith and without coercion, and that the process by which the agreement is negotiated and finalised is fair.

Australian Vintage Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established