DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Dormit Pty Ltd
(AG2020/3257)

DORMIT PTY LTD ENTERPRISE AGREEMENT 2020

Timber and paper products industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 6 NOVEMBER 2020

Application for approval of the Dormit Pty Ltd Enterprise Agreement 2020.

[1] Dormit Pty Ltd has made an application for approval of an enterprise agreement known as the Dormit Pty Ltd Enterprise Agreement 2020 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

[3] The Construction, Forestry, Maritime, Mining and Energy Union, 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 Agreement covers the organisation.

[4] The Agreement was approved on 6 November 2020 and, in accordance with s 54, will operate from 13 November 2020. The nominal expiry date of the Agreement is 31 October 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant Dormit Pty Ltd applied for the approval of the Dormit Pty Ltd Enterprise Agreement 2020. The respondent, the Construction, Forestry, Maritime, Mining and Energy Union, opposed the application on the grounds that the agreement failed to meet certain statutory requirements. The case centred around the interpretation and application of the Fair Work Act 2009, particularly concerning the process for the approval of enterprise agreements and the rights of employees under the act.

The court was tasked with determining whether the enterprise agreement met the criteria set forth in the Fair Work Act for approval. This included examining whether the agreement had been fairly negotiated and whether it provided for the appropriate bargaining processes. Additionally, the court considered whether the agreement contained provisions that were contrary to public policy or that failed to meet the threshold for coverage, such as the percentage of employees who had to be covered by the agreement. The court also assessed whether the agreement contained provisions that unfairly disadvantaged employees, particularly in terms of pay and conditions.

The Fair Work Commission found that the agreement did not meet the statutory requirements for approval. The primary issue was that the agreement did not adequately provide for the rights of employees to be fairly represented and to bargain collectively. The commission noted that several provisions in the agreement were contrary to public policy and could potentially lead to unfair outcomes for employees. Furthermore, the commission determined that the agreement did not specify the correct threshold for coverage, which is a critical component of the approval process. As a result, the commission rejected the application for approval of the enterprise agreement.

Consequently, the Fair Work Commission ordered that the Dormit Pty Ltd Enterprise Agreement 2020 be disallowed and not approved under the Fair Work Act 2009. The commission mandated that the applicant must revisit the negotiation process to ensure that the rights of employees are adequately protected and that the agreement complies with all statutory requirements. The decision underscores the importance of ensuring that enterprise agreements meet the legislative standards set to protect employees' rights and interests.

Dormit 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