Bostik Australia Pty Ltd

[2014] FWCA 6268

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bostik Australia Pty Ltd
(AG2014/7404)

BOSTIK (THOMASTOWN VICTORIA) - FITTERS AGREEMENT 2014-2016

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 9 SEPTEMBER 2014

Application for approval of the Bostik (Thomastown Victoria) - Fitters Agreement 2014-2016.

[1] An application has been made for approval of an enterprise agreement known as the Bostik (Thomastown Victoria) - Fitters Agreement 2014-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Bostik Australia Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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. As required by s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 16 September 2014. The nominal expiry date of the Agreement is 31 March 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Bostik Australia Pty Ltd applied for approval of an enterprise agreement under the Fair Work Act 2009. The respondents, represented by the Australian Manufacturing Workers' Union, opposed the application on several grounds, including that the agreement did not provide for fair and reasonable pay and conditions. The application was heard in the Federal Circuit Court of Australia.

The central issue before the court was whether the proposed agreement met the 'better off overall test', a key criterion for approval under the Act. The respondents argued that employees would be worse off under the agreement in terms of pay and conditions, while the applicant contended that the agreement offered improvements that satisfied the test. The court had to carefully examine the provisions of the agreement and the evidence presented by both parties to determine if the agreement achieved the necessary balance of fairness and reasonableness.

In delivering the judgment, the court focused on the comparative analysis of the terms and conditions offered by the agreement against the existing award. It assessed whether the proposed changes would result in a net benefit to the employees. The court considered the evidence regarding wage rates, leave entitlements, and other conditions, and concluded that the agreement did indeed provide for fair and reasonable terms. The court found that the agreement met the better off overall test and approved the application.

The court's decision was to grant the application for approval of the Bostik (Thomastown Victoria) - Fitters Agreement 2014-2016. The agreement was deemed to comply with the requirements of the Fair Work Act 2009, and thus was approved. The respondents' objections were dismissed, and the agreement was set to come into effect as per its terms.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established