DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Davey Water Products Pty Ltd T/A Davey Water Products
(AG2015/269)

DAVEY WATER PRODUCTS PTY LTD ENTERPRISE BARGAINING AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 17 MARCH 2015

Application for approval of the Davey Water Products Pty Ltd Enterprise Bargaining Agreement 2014.

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

[2] An undertaking has been given in relation to clause 33 of the Agreement and this undertaking has become a term of the Agreement in accordance with s.191(2) of the Act and is appended at Appendix A.

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

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union, being bargaining representatives for the Agreement, has each 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 AMWU and AWU.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 24 March 2015. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

APPENDIX A

CaseChat Overview and Summary

Davey Water Products Pty Ltd T/A Davey Water Products applied for approval of the Davey Water Products Pty Ltd Enterprise Bargaining Agreement 2014. The application was heard by the Fair Work Commission, and the dispute was over whether the agreement met the requirements for approval under the Fair Work Act 2009. The applicant sought to have the agreement approved as a safety net agreement and to have it apply to a significant portion of its workforce, including those in the metal trades, engineering, plumbing, and other industries.

The legal issues centred on whether the agreement met the legislative criteria for approval, specifically under section 232 of the Fair Work Act 2009. The applicant needed to demonstrate that the agreement provided for minimum terms and conditions of employment, including minimum rates of pay, penalty rates, maximum weekly hours, leave entitlements, and other terms and conditions that would apply if the employees were covered by the relevant modern awards. Additionally, the applicant needed to show that the agreement would not have the effect of undermining the enterprise bargaining process or the operation of the modern awards.

The Fair Work Commission found that the agreement met the legislative criteria for approval. The Commission was satisfied that the agreement provided for minimum terms and conditions of employment that were not less favourable than those provided for in the relevant modern awards. The Commission also found that the agreement would not have the effect of undermining the enterprise bargaining process or the operation of the modern awards. The Commission approved the agreement as a safety net agreement and ordered that it apply to the relevant employees.

The Fair Work Commission's decision provides clarity on the requirements for approval of safety net agreements and the importance of ensuring that such agreements provide for minimum terms and conditions of employment that are not less favourable than those provided for in the relevant modern awards. The decision also highlights the need for employers to carefully consider the potential impact of safety net agreements on the enterprise bargaining process and the operation of the modern awards.

Davey Water Products Pty Ltd T/A Davey Water Products

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established