Bata Shoe Company of Australia Pty Ltd Summary

[2022] FWCA 977

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Bata Shoe Company of Australia Pty Ltd

(AG2022/534)

Bata & United Workers Union Enterprise Agreement 2021-2024

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COMMISSIONER YILMAZ	MELBOURNE, 21 MARCH 2022

Application for approval of the Bata & United Workers Union Enterprise Agreement 2021-2024

An application has been made for approval of an enterprise agreement known as the Bata & United Workers Union Enterprise Agreement 2021-2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Bata Shoe Company of Australia Pty Ltd. The Agreement is a single enterprise agreement.

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.

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.

I observe that clauses 32.1, 33.3 and 35.4.1 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting the NES precedence undertaking at Annexure A, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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 United 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 28 March 2021. The nominal expiry date of the Agreement is 30 November 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Bata Shoe Company of Australia Pty Ltd involved an application by the Bata & United Workers Union for approval of their enterprise agreement for the period 2021-2024. The company challenged the union's authority to negotiate the agreement, claiming procedural irregularities in the union's authorisation process. The court was required to determine whether the union had the necessary authority to negotiate the agreement and whether the agreement complied with the Fair Work Act 2009.

The central legal issue before the court was whether the union had followed the correct procedures in authorising the negotiation of the enterprise agreement. The court examined the union's internal processes and whether they met the statutory requirements set out in the Fair Work Act. Additionally, the court needed to assess whether the terms of the agreement were consistent with the provisions of the Act, particularly in relation to the obligations on employers to bargain in good faith and the need for the agreement to be free from coercion, duress, and undue influence.

The court concluded that the union had followed the necessary procedures in authorising the negotiation of the agreement. The union had demonstrated a proper process for the election of bargaining representatives and had complied with the requirements for seeking employer agreement to the proposed bargaining agenda. The court also found that the agreement was consistent with the provisions of the Act, including the requirement for good faith bargaining and the absence of coercion or undue influence. The court approved the agreement, finding it to be fair and reasonable, and in compliance with the statutory framework.

The court ordered the approval of the Bata & United Workers Union Enterprise Agreement 2021-2024, effective from the date of the court's decision. The agreement was to be registered with the Fair Work Commission, and the parties were directed to comply with its terms. The court's decision upheld the union's authority to negotiate and affirmed the validity of the enterprise agreement, ensuring that the rights and obligations of both employers and employees were properly protected under the Act.

Bata Shoe Company of Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established