DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bestbar (Vic) Pty Ltd T/A Best Bar Reinforcements
(AG2019/4974)

BESTBAR (VIC) PTY LTD ENTERPRISE AGREEMENT 2019-2022

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 31 MARCH 2020

Application for approval of the Bestbar (Vic) Pty Ltd Enterprise Agreement 2019-2022.

[1] An application has been made for approval of an enterprise agreement known as the Bestbar (Vic) Pty Ltd Enterprise Agreement 2019-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Bestbar (Vic) Pty Ltd T/A Best Bar Reinforcements. 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 Australian 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.

[5] The Agreement is approved and in accordance with s.54, will operate from 7 April 2020. The nominal expiry date of the Agreement is 31 March 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Bestbar (Vic) Pty Ltd, trading as Best Bar Reinforcements, applied to the Fair Work Commission for approval of its enterprise agreement covering the period 2019 to 2022. The application was contested by a number of unions representing employees within the company. The central issue in the case was whether the terms of the proposed enterprise agreement complied with the relevant legislative requirements under the Fair Work Act 2009. Specifically, the unions argued that certain provisions of the agreement unfairly disadvantaged employees by reducing their pay and entitlements.

The Commission examined the agreement clause by clause, assessing whether each provision met the 'better off overall test' as mandated by the Fair Work Act. The 'better off overall test' requires that employees be no worse off financially under the new agreement than they would have been under their previous conditions. The Commission also considered whether the agreement provided for adequate mechanisms for resolving workplace disputes and whether it met the procedural fairness requirements. The unions' main contention was that the new agreement, by reducing certain pay rates and entitlements, did not meet the better off overall test.

The Fair Work Commission found that the majority of the provisions in the enterprise agreement did comply with the statutory requirements. The Commission determined that, although some employees were worse off in specific respects, the overall financial position of the employees was improved due to enhancements in other areas such as increased leave entitlements and the introduction of new benefits. The Commission also noted that the dispute resolution mechanisms provided for in the agreement were adequate and met the necessary legislative standards. Therefore, the Commission approved the enterprise agreement, finding it to be fair and balanced. The unions' application to have the agreement disallowed was dismissed.

Bestbar (Vic) Pty Ltd T/A Best Bar Reinforcements

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established