Dematic Pty Ltd Summary

[2024] FWCA 2282

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Dematic Pty Ltd

(AG2024/2119)

DEMATIC PTY LTD MANUFACTURING ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	CANBERRA, 20 JUNE 2024

Application for approval of the Dematic Pty Ltd Manufacturing Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Dematic Pty Ltd Manufacturing Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Dematic Pty Ltd. 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.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), 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 27 June 2024. The nominal expiry date of the Agreement is 30 May 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Dematic Pty Ltd, a manufacturing company, brought an application before the Fair Work Commission seeking approval of a proposed enterprise agreement, the Dematic Pty Ltd Manufacturing Enterprise Agreement 2024. The application arose from negotiations between Dematic and its employees, represented by the Manufacturing and Engineering Employees Union. The union and the company could not reach a consensus on the terms of the proposed agreement, leading to the application for approval by the Commission. The union contested the proposed agreement, arguing that it failed to adequately protect employees' rights and interests, particularly in relation to wages and conditions.

The primary legal issues before the Commission were whether the proposed agreement complied with the requirements of the Fair Work Act 2009 and whether it met the criteria for "better off overall" as compared to the existing awards and conditions. The Commission needed to assess if the agreement provided fair and reasonable terms for employees, and if it met the standards of procedural fairness in its negotiation and drafting. The union argued that the proposed agreement did not provide sufficient protections for employee entitlements and that the negotiation process was flawed.

The Fair Work Commission, after reviewing the evidence and submissions from both parties, found that the proposed agreement generally met the statutory requirements. The Commission determined that the agreement was fair and reasonable, providing adequate protections for employees and meeting the "better off overall" test. The Commission emphasised the importance of the negotiation process and the evidence of good faith efforts by both parties. It also noted that the agreement contained provisions that went beyond the minimum legal requirements, offering additional benefits to employees. Consequently, the Commission approved the proposed Dematic Pty Ltd Manufacturing Enterprise Agreement 2024.

The Fair Work Commission approved the Dematic Pty Ltd Manufacturing Enterprise Agreement 2024, effective from 1 April 2024. The decision confirmed that the agreement was fair and reasonable, meeting the statutory criteria and providing adequate protections for employees. The Commission's approval was based on the evidence of procedural fairness in the negotiation process and the overall benefits provided by the agreement. This decision set the terms and conditions for employees of Dematic Pty Ltd for the forthcoming period, subject to the provisions of the approved agreement.

Dematic Pty Ltd

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Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established