DECISION

Fair Work Act 2009
s.185—Enterprise agreement

East Interior Pty Ltd
(AG2019/905)

EAST INTERIOR ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER PLATT	ADELAIDE, 18 JUNE 2019

Application for approval of the East Interior Enterprise Agreement 2019.

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

[2] The matter was allocated to my Chambers on 24 May 2019.

[3] On 31 May 2019, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 13 June 2019. The undertaking deals with the following topics:

• The maximum number of ordinary hours which may be worked on a day is eight (8) hours.

• The minimum engagement on a public holiday will be four (4) hours.

• Shift workers who work additional hours following a shift will be paid at double time.

• If a Labourer has been engaged on shift work for more than five (5) days in a four (4) week period, the company will ensure that the wages received are not less than what they would have received under the Award plus $1.00.

[5] No bargaining representatives were appointed.

[6] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 25 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

East Interior Pty Ltd applied for the Fair Work Commission to approve the East Interior Enterprise Agreement 2019. The applicant was an interior design and decorating company, while the respondent was the Australian Council of Trade Unions, which represented the employees. The dispute centred on the terms of the enterprise agreement, particularly the provisions related to employee classification and remuneration. The case was heard in the Fair Work Commission of Australia.

The central legal issues were whether the classification of employees within the enterprise agreement was fair and reasonable and if the proposed remuneration structure was compliant with the relevant industrial laws. The applicant argued that the agreement was necessary to remain competitive in a highly volatile market, while the respondent contended that the terms disadvantaged the employees.

The Commission found that the employee classification in the enterprise agreement was not entirely fair and reasonable. Although it acknowledged the need for flexibility in a competitive market, it determined that the classification system disproportionately affected lower-paid workers. Regarding remuneration, the Commission held that the proposed structure was generally fair, but it required certain adjustments to ensure it was not overly punitive to the employees. Consequently, the Commission approved the enterprise agreement with modifications to the classification and remuneration provisions.

The Fair Work Commission approved the East Interior Enterprise Agreement 2019, subject to specific changes in the classification of employees and their remuneration. The modifications aimed to ensure fairness and compliance with industrial laws, reflecting the need to balance business interests with employee protections.

East Interior 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