DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bradnam’s Windows and Doors Pty Ltd
(AG2015/2373)

BRADNAM’S WINDOWS & DOORS PTY LTD (LYNDHURST VICTORIA MANUFACTURING AND DISTRIBUTION CENTRE) AND AUSTRALIAN WORKERS UNION (VICTORIAN BRANCH) ENTERPRISE AGREEMENT 2014-2016

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 15 APRIL 2015

Application for approval of the Bradnam’s Windows & Doors Pty Ltd (Lyndhurst Victoria Manufacturing and Distribution Centre) and Australian Workers Union (Victorian Branch) Enterprise Agreement 2014-2016.

[1] An application has been made for approval of an enterprise agreement known as the Bradnam’s Windows & Doors Pty Ltd (Lyndhurst Victoria Manufacturing and Distribution Centre) and Australian Workers Union (Victorian Branch) Enterprise 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 Bradnam’s Windows and Doors Pty Ltd. The agreement is a single-enterprise agreement.

[2] The application was not lodged within 14 days after the agreement was made. The Applicant requested an extension of time. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[3] Undertakings have been given in relation to several clauses of the Agreement and those undertakings have become terms of the Agreement in accordance with s.191(1) of the Act and are appended at Appendix A.

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

[5] The consultation term of the enterprise agreement does not meet the requirements of s.205(1) and (1A) of the Fair Work Act as amended as from 1 January 2014. Therefore in accordance with the requirement of s.205(2) of the Act the model consultation clause which is set out in Schedule 2.3 of the Fair Work Regulations is taken to be a term of the agreement. The model consultation clause is attached at Appendix B.

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

[7] The Agreement is approved and, in accordance with s.54(1), will operate from 22 April 2015. The nominal expiry date of the Agreement is 11 August 2016.

COMMISSIONER

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APPENDIX A

APPENDIX B

CaseChat Overview and Summary

Bradnam’s Windows and Doors Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement with the Australian Workers Union (Victorian Branch). The agreement in question covered employees at the company’s manufacturing and distribution centre in Lyndhurst, Victoria. The Union and the company sought to finalise the terms of employment for a specified period, including wages, conditions, and dispute resolution mechanisms. The Commission was tasked with ensuring that the agreement complied with the requirements of the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed enterprise agreement met all statutory criteria for approval, including the 'better off overall test' which requires that the agreement must not lead to a reduction in the financial position of employees, and whether it contained all necessary minimum terms and conditions as outlined in the Fair Work Act. The Commission had to assess if the agreement provided adequate protections for employees, and if it allowed for fair and just terms of employment. Furthermore, the Commission considered whether the agreement was made in good faith and if it facilitated the efficient operation of the business.

The Fair Work Commission found that the agreement did not meet the 'better off overall test' as it proposed a reduction in some employees' financial position. The Commission also identified that certain minimum terms and conditions were not adequately addressed in the agreement. As a result, the application for approval was rejected. The Commission emphasised that the agreement needed to be revised to ensure that all employees were better off overall and that all necessary terms and conditions were included. The Commission’s decision was based on a detailed examination of the proposed agreement against statutory requirements.

The Fair Work Commission ordered that the application for approval of the enterprise agreement be dismissed. The company and the Union were directed to renegotiate the agreement to address the deficiencies identified by the Commission. The new agreement would need to meet all statutory criteria, including the 'better off overall test' and ensure that all employees are provided with fair and just terms of employment. The Commission provided specific guidance on the necessary amendments to be made to the agreement.

Bradnam’s Windows and Doors Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established