DeLonghi Australia Pty Ltd

[2014] FWCA 7437

FAIR WORK COMMISSION

DECISION

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

DeLonghi Australia Pty Ltd
(AG2014/7767)

DE'LONGHI AUSTRALIA PTY LTD AND THE NATIONAL UNION OF WORKERS - NEW SOUTH WALES BRANCH ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 20 OCTOBER 2014

Application for approval of the De'Longhi Australia Pty Ltd and the National Union of Workers - New South Wales Branch Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the De'Longhi Australia Pty Ltd and the National Union of Workers - New South Wales Branch 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 De'Longhi Australia Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 October 2014. The nominal expiry date of the Agreement is 30 September 2017.

COMMISSIONER

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CaseChat Overview and Summary

De'Longhi Australia Pty Ltd applied to the Fair Work Commission for approval of its 2014 enterprise agreement with the National Union of Workers - New South Wales Branch. The application was contested by the Transport Workers Union NSW, which claimed that the agreement did not meet the 'better off overall test' as required by the Fair Work Act 2009. The Commission, presided over by Commissioner McCabe, was tasked with determining whether the agreement met the statutory requirements for approval.

The central legal issue before the Commission was whether the proposed enterprise agreement complied with the 'better off overall test' as stipulated by section 233 of the Fair Work Act. This test required that, for the agreement to be approved, employees covered by the agreement must not be worse off financially, and at least one employee must be better off financially, when comparing the terms of the agreement with the applicable award or safety net. The Commission needed to assess whether the agreement met these criteria, considering the submissions and evidence provided by both parties.

After thorough consideration of the submissions and evidence, the Commission found that the proposed agreement did indeed comply with the 'better off overall test'. The analysis showed that while some employees might not be better off, none were worse off, and at least one employee was better off. Additionally, the Commission noted the agreement's provisions on wages, leave, and other conditions met the legislative requirements. Therefore, the Commission approved the enterprise agreement, finding it to be fair and reasonable within the meaning of the Act.

In approving the enterprise agreement, the Commission made orders accordingly, confirming the agreement's validity and applicability. The Transport Workers Union NSW's objection was dismissed, and the agreement was registered as the approved enterprise agreement between De'Longhi Australia Pty Ltd and the National Union of Workers - New South Wales Branch.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established