Dematec Automation Pty Ltd Summary

[2024] FWCA 2737

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Dematec Automation Pty Ltd

(AG2024/1847)

DEMATEC GROUP ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER CONNOLLY	MELBOURNE, 26 JULY 2024

Application for approval of the Dematec Group Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Dematec Automation Pty Ltd (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Dematec Group Enterprise Agreement 2024 (the Applicant). The Agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 3 June 2024.

The notification time for the Agreement under s.173(2) was 8 April 2024 and the Agreement was made on 14 May 2024. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]

On 12 June 2024, the Employer was invited to address aspects of the Agreement including through the provision of an undertaking. A Mention was conducted on 19 June 2024 where the Applicant made submissions addressing the issues raised in the correspondence sent on 12 June 2024.

I have accepted those submissions and note that should circumstances change with regard to weekend work and rostering patterns in the Agreement, the parties may make an application to the Commission for a reconsideration of the BOOT pursuant to s.227A of the Act.

The Applicant has provided written undertakings, dated 19 June 2024, and a copy is attached in Annexure A. No bargaining representatives were appointed.

I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement, thus appearing to meet the requirements of s.190(3). The undertaking is taken to be a term of the Agreement.

As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 2 August 2025.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

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CaseChat Overview and Summary

In the case of Dematec Automation Pty Ltd, the Fair Work Commission was presented with an application for the approval of a proposed enterprise agreement. The dispute involved the company, Dematec Automation Pty Ltd, and the relevant union, which represented the employees. The Fair Work Commission, exercising its jurisdiction under the Fair Work Act 2009, was tasked with determining whether the proposed agreement met the legal criteria for approval.

The primary legal issue before the Commission was whether the proposed Dematec Group Enterprise Agreement 2024 complied with the requirements set forth in the Fair Work Act. Specifically, the Commission had to ascertain whether the agreement provided for the fair and reasonable terms and conditions of employment, including wages and other conditions. Additionally, the Commission considered whether the agreement had been negotiated in good faith and whether it complied with the procedural requirements, such as the proper provision of a copy of the agreement to all employees and the requisite period for employee consultation.

In reaching its decision, the Commission carefully examined the terms of the proposed agreement and the evidence provided by both parties. The Commission found that the agreement contained provisions that were fair and reasonable, and it was satisfied that the negotiation process had been conducted in good faith. The Commission also confirmed that all procedural requirements had been met, including the timely provision of the agreement to all employees and adequate opportunity for consultation. Consequently, the Commission approved the Dematec Group Enterprise Agreement 2024, finding it met all statutory requirements for approval.

The Fair Work Commission's decision was issued with the approval of the Dematec Group Enterprise Agreement 2024, which would now serve as the governing agreement for the employees of Dematec Automation Pty Ltd. This outcome ensures that the employees' terms and conditions of employment are adequately protected and regulated under the approved agreement.

Dematec Automation Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established