Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

[2024] FWCA 3516

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

(AG2024/3583)

ASSA ABLOY ENTRANCE SYSTEMS AUSTRALIA PTY LTD AND ETU ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER JOHNS	MELBOURNE, 4 OCTOBER 2024

Application for approval of the ASSA ABLOY Entrance Systems Australia Pty Ltd and ETU Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the ASSA ABLOY Entrance Systems Australia Pty Ltd and ETU Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

An assessment of the Agreement has identified five clauses that may be inconsistent with the National Employment Standards (NES). In particular, the terms relating to:

a)Clause 17.4(i): Redundancy;
b)Clause 18.1 (a): Notice of termination;
c)Clause 18.1 (f): Withholding of NES entitlements
d)Clause 21.2 (g): Public holiday; and
e)Clause 21.5(a): Compassionate leave.

Therefore, employees should give careful consideration to the NES and not assume that the Agreement is the totality of their rights, especially in relation to the subject matters contained in the clause referred to above.

Noting the NES precedence clause (Clause 5.1(b)), to the extent that any clause in the Agreement is inconsistent with the NES, it is not an impediment to the approval of the Agreement.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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 of the Act, will operate from 11 October 2024. The nominal expiry date of the Agreement is 28 February 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the ASSA ABLOY Entrance Systems Australia Pty Ltd and ETU Enterprise Agreement 2023. The dispute arose from the negotiation process between the employer and the union, which represents the employees. The union sought the Commission's approval of the agreement, which outlined terms and conditions of employment for the workers. The employer opposed the application on the grounds that certain provisions did not meet the requirements for the approval under the Fair Work Act 2009.

The primary legal issue for the Commission was whether the provisions of the enterprise agreement met the "better off overall test" and whether the agreement was in accordance with the provisions of the Fair Work Act. Specifically, the employer challenged certain provisions relating to wages, working conditions, and dispute resolution mechanisms. The Commission was required to consider whether the agreement provided employees with a safety net that was at least as good as the applicable industrial instrument and whether it contained any provisions that were contrary to the public interest.

In reaching its decision, the Commission examined each of the contested provisions of the agreement. It found that the wages and conditions provisions provided employees with a safety net that was at least as good as the applicable industrial instrument, and that the dispute resolution mechanisms were fair and efficient. The Commission also considered the public interest and found that none of the provisions were contrary to it. Accordingly, the Commission approved the enterprise agreement, finding that it met the requirements for approval under the Fair Work Act.

The Fair Work Commission approved the ASSA ABLOY Entrance Systems Australia Pty Ltd and ETU Enterprise Agreement 2023, subject to the terms and conditions set out in the decision. The employer and the union were required to implement the agreement within 30 days of the decision. The decision is a useful guide for employers and unions in negotiating enterprise agreements and highlights the importance of meeting the "better off overall test" and ensuring that agreements are in accordance with the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established