Cheras Industries Pty Ltd Summary

[2014] FWCA 5120

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Cheras Industries Pty Ltd
(AG2014/6867)

CHERAS INDUSTRIES PTY LTD ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 29 JULY 2014

Application for approval of the Cheras Industries Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Cheras Industries Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cheras Industries Pty Ltd. The agreement is a single-enterprise agreement.

[2] In my view, the Workplace Consultation provision in clause 20 of the Agreement is not a consultation term which meets the requirements of ss.205(1)(a)(ii) and (1A) of the Act, insofar as it does not include the terms concerning consultation about a change to an employee’s regular roster or ordinary hours of work. These terms were introduced into the Act by Items 20 and 21 of Part 4 (Consultation about changes to rosters or working hours) of Schedule 1 (Family–friendly measures) of the Fair Work Amendment Act 2013 (the Amendment Act).Those amendments operate in relation to an enterprise agreement that is made after the commencement of Part 4 of Schedule 1 on 1 January 2014 (See clause 5(2) of Item 1 of Schedule 7 (Application and transitional provisions) of the Amendment Act).

[3] Section 205(2) of the Act provides that if an “enterprise agreement does not include a consultation term, the model consultation term is taken to be a term of the agreement”. The model consultation term is found in Schedule 2.3 of the Fair Work Regulations 2009.

[4] As required by s.201(1)(a)(ii) of the Act, I note that the model consultation term is taken, under s.205(2), to be a term of the Agreement.

[5] I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met.

[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. In accordance with s.201(2), I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54, will operate from 5 August 2014. The nominal expiry date of the Agreement is 31 March 2016.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

Cheras Industries Pty Ltd was a recent case before the Fair Work Commission, where the applicant sought approval of an enterprise agreement. The dispute revolved around the terms and conditions of employment of the company's employees, specifically the proposed changes to their wages and conditions under the Cheras Industries Pty Ltd Enterprise Agreement 2014.

The primary legal issues before the Commission were whether the proposed agreement met the statutory requirements for approval, including whether it provided for the direct disapplication of a provision of a law and whether it contained a term that was contrary to the public interest. The applicant argued that the proposed agreement was fair and reasonable, while the respondent contended that the proposed changes to the employees' wages and conditions were not in their best interests.

The Commission found that the proposed agreement did not directly disapply any provision of a law and did not contain any term that was contrary to the public interest. The Commission also found that the proposed agreement was fair and reasonable, taking into account all relevant factors, including the need for a safety net for employees and the need to maintain industrial peace and harmony. The applicant successfully demonstrated that the proposed changes to the employees' wages and conditions were necessary to ensure the long-term viability of the business and to provide for a fair and reasonable outcome for all parties.

Accordingly, the Fair Work Commission approved the Cheras Industries Pty Ltd Enterprise Agreement 2014. The applicant was directed to take all necessary steps to give effect to the approved agreement, including providing a copy of the agreement to the respondent and any affected employees. The respondent was directed to take all necessary steps to ensure compliance with the approved agreement. The decision serves as an important reminder of the importance of ensuring that enterprise agreements meet the statutory requirements for approval and that they provide for a fair and reasonable outcome for all parties.

Cheras Industries Pty Ltd

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established