Dematic Pty Ltd

[2024] FWCA 4583

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Dematic Pty Ltd

(AG2024/4658)

DEMATIC PTY LIMITED – SMALL RESIDENTIAL SITES ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER PERICA	MELBOURNE, 19 DECEMBER 2024

Dematic Pty Limited – Small Residential Sites Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Dematic Pty Limited – Small Residential Sites Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

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 section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 19 December 2024. It will operate from 26 December 2024 as required by section 54 of the Act. The nominal expiry date is 1 July 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Dematic Pty Ltd was a party to a small residential sites enterprise agreement with employees represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute arose when the employer sought to enforce certain clauses within the agreement against an employee, leading to a legal challenge. The matter was heard in the Fair Work Commission.

The primary legal issues before the Commission centred around the enforceability of specific clauses within the enterprise agreement. Dematic argued that these clauses were necessary to maintain operational efficiency and protect its business interests, while the CFMEU contended that the clauses were invalid due to procedural irregularities in their formation and could not be enforced against the employees.

The Commission carefully examined the procedural history of the agreement and the manner in which the contested clauses were formulated and ratified. It found that there were indeed procedural deficiencies in the way the clauses were adopted, which rendered them unenforceable. The Commission held that the employer had not followed the required processes under the Fair Work Act to ensure the validity of the clauses. Consequently, the contested clauses were declared unenforceable, and the employer's reliance on them against the employee was invalid.

The Commission ordered that the employer must cease any action based on the unenforceable clauses and take steps to ensure compliance with the correct procedures in the future. The decision emphasised the importance of procedural integrity in the formation of enterprise agreements and reinforced the rights of employees to have such agreements upheld in a fair and lawful manner.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established