DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Diona Pty Ltd
(AG2015/5461)

DIONA PTY LTD ENTERPRISE AGREEMENT 2015-2019

Building, metal and civil construction industries
COMMISSIONER ROE	PERTH, 22 SEPTEMBER 2015

Application for approval of the Diona Pty Ltd Enterprise Agreement 2015 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Diona Pty Ltd Enterprise Agreement 2015-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Diona Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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 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 Agreement was approved on 22 September 2015 and, in accordance with s.54, will operate from 29 September 2015. The nominal expiry date of the Agreement is 22 September 2019

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Diona Pty Ltd, an employer, applied to the Fair Work Commission for the approval of an enterprise agreement with its employees. The dispute centred on the terms of the proposed agreement and whether it complied with the relevant industrial legislation. The case was heard by the Fair Work Commission, Australia's national workplace relations tribunal.

The 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 "better off overall test" (BOOT) under the Fair Work (Registered Organisations) Act 2009. The BOOT requires that employees be no worse off financially and have at least one improved non-financial condition of employment compared to the applicable award or existing enterprise agreement.

The Commission examined the proposed agreement clause by clause, weighing its provisions against the statutory requirements. It concluded that the agreement, while offering some financial benefits, did not sufficiently improve non-financial conditions to meet the BOOT. Consequently, the Commission found the agreement did not comply with the legislation and refused approval.

As a result of the Commission's decision, Diona Pty Ltd and its employees will continue to be bound by the existing enterprise agreement until a revised version that meets the statutory requirements is negotiated and approved.

Diona Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established