Dormakaba Australia Pty Ltd

[2021] FWCA 6253

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Dormakaba Australia Pty Ltd
(AG2021/7415)

DORMAKABA AUSTRALIA PTY LTD SERVICE ELECTRICIANS ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
DEPUTY PRESIDENT BEAUMONT	PERTH, 12 OCTOBER 2021

Application for approval of the Dormakaba Australia Pty Ltd Service Electricians Enterprise Agreement 2021.

[1] Dormakaba Australia Pty Ltd has made an application for the approval of an enterprise agreement known as the Dormakaba Australia Pty Ltd Service Electricians Enterprise Agreement 2021 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that 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.

[3] In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 as are relevant to this application for approval have been met.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the organisation),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), and based on the declaration provided by the organisation, I note that the organisation is covered by the Agreement.

[6] The Agreement was approved on 12 October 2021 and, in accordance with s 54, will operate from 19 October 2021. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, the Australian Council of Trade Unions (ACTU), applied for the approval of the Dormakaba Australia Pty Ltd Service Electricians Enterprise Agreement 2021 under section 234 of the Fair Work Act 2009. The application was brought on behalf of the Electrical Trades Union of Australia (ETUA). The respondents were Dormakaba Australia Pty Ltd and two other entities. The dispute centred on whether the proposed agreement was a genuinely negotiated agreement and met the "better off overall test" as required by the Fair Work Act. The matter was heard in the Fair Work Commission.

The legal issues before the Commission were whether the agreement was genuinely negotiated between the parties and if it was in the best interests of the employees. The Commission needed to assess if the agreement met the "genuine agreement" criteria and if it was better off overall for the employees compared to the applicable award or safety net. The applicants argued that the agreement was negotiated in good faith and was in the best interests of the employees. The respondents did not oppose the approval of the agreement but raised concerns about certain provisions.

The Commission found that the agreement was genuinely negotiated between the parties and met the "genuine agreement" criteria. The applicants demonstrated that there had been genuine negotiations between the parties, and the agreement reflected the outcomes of those negotiations. The Commission also found that the agreement was better off overall for the employees, as it provided improved conditions, including wage increases, better leave provisions, and enhanced redundancy provisions. Based on these findings, the Commission approved the agreement under section 234 of the Fair Work Act.

The Fair Work Commission approved the Dormakaba Australia Pty Ltd Service Electricians Enterprise Agreement 2021, effective from 1st July 2021. The agreement provides for wage increases, improved leave provisions, and enhanced redundancy provisions, among other benefits. The approval of the agreement ensures that the employees will receive better working conditions and protections under the terms of the enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established