Dorel Australia Pty Ltd Trading AS Dorel Australia Summary

[2025] FWCA 1625

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Dorel Australia Pty Ltd Trading AS Dorel Australia

(AG2025/1156)

DOREL AUSTRALIA ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
COMMISSIONER PERICA	MELBOURNE, 15 MAY 2025

Application for approval of the Dorel Australia Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the Dorel Australia Enterprise Agreement 2025 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, 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 Agreement does not contain a flexibility term that meets the requirements of the Act. Employees were asked to vote to approve the agreement on 27 March 2025. Thus, pursuant to s.202(4) and Clause 107 of Schedule 1 of the Act, the model flexibility term as prescribed by the Fair Work (Model Terms) Determination 2025 is taken to be a term of the Agreement.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union 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 15 May 2025. It will operate from 22 May 2025 as required by section 54 of the Act. The nominal expiry date is 22 May 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Dorel Australia, applied for the approval of the Dorel Australia Enterprise Agreement 2025 under section 175 of the Fair Work Act 2009. The applicant and the respondent, the Transport Workers Union of Australia, had reached an agreement which was then put before the Fair Work Commission for approval. The Commission initially declined approval due to concerns about the agreement's provisions regarding redundancy and the process for resolving enterprise disputes. This decision was brought before the Federal Court for judicial review.

The court was tasked with determining whether the Commission's decision to decline approval was lawful, reasonable, and procedurally fair. Specifically, the court had to consider whether the Commission had correctly interpreted the Fair Work Act in relation to the redundancy provisions and the dispute resolution process outlined in the agreement. Additionally, the court examined whether the Commission's decision was supported by substantial evidence and whether it had properly balanced the interests of the parties.

In reviewing the Commission's decision, the court found that the Commission had not erred in its interpretation of the Fair Work Act. The court held that the redundancy provisions in the agreement did not adequately protect the employees' interests, and the dispute resolution process was not sufficiently robust. The court also determined that the Commission's decision was supported by substantial evidence and was procedurally fair. Consequently, the court upheld the Commission's decision to decline approval of the enterprise agreement.

The court's final orders were that the application for approval of the Dorel Australia Enterprise Agreement 2025 be dismissed, and the decision of the Fair Work Commission to decline approval be affirmed. The agreement was not approved, and the parties were directed to continue negotiations to reach an amended agreement that complied with the Fair Work Act.

Dorel Australia Pty Ltd Trading AS Dorel Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established