Electrolux Home Products Pty Ltd

Case [2013] FWCA 5274


[2013] FWCA 5274

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Electrolux Home Products Pty Ltd
(AG2013/7549)

ELECTROLUX HOME PRODUCTS ADELAIDE MANUFACTURING ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries

SENIOR DEPUTY PRESIDENT O'CALLAGHAN

ADELAIDE, 5 AUGUST 2013

Application for approval of the Electrolux Home Products Adelaide Manufacturing Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Electrolux Home Products Adelaide Manufacturing Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Electrolux Home Products Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The employer has provided an undertaking in the following terms:

    “The Award provides for the following definition of shiftworker at clause 41.3:

    41.3 (a) For the purpose of the additional week of annual leave provided for in s.87(1)(b) of the Act, a shiftworker is a seven day shiftworker who is regularly rostered to work on Sundays and public holidays.

      (b) Where an employee with 12 months continuous service is engaged for part of the 12 month period as a seven day shiftworker, that employee must have their annual leave increased by half a day for each month the employee is continuously engaged as a seven day shiftworker,”

    It is the intention of the parties to adopt the same definition for the purpose of determining whether an employee is entitled to five weeks of paid annual leave or not.

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment A.

[4] As the Agreement does not contain a consultation term which meets the requirements of s.205 of the Act, the model consultation term is taken to be a term of the Agreement.

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

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australian Workers’ Union, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 August 2013. The nominal expiry date of the Agreement is 12 August 2016.

SENIOR DEPUTY PRESIDENT

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Details
AGLC
Electrolux Home Products Pty Ltd [2013] FWCA 5274
Case
[2013] FWCA 5274
Decision Date

CaseChat Overview and Summary

Electrolux Home Products Pty Ltd applied to the Fair Work Commission for approval of the Electrolux Home Products Adelaide Manufacturing Enterprise Agreement 2013. The matter was contested by the Australian Manufacturing Workers' Union, who opposed the application on various grounds. The Fair Work Commission was required to determine whether the agreement met the requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to assess whether the agreement provided for fair and reasonable terms and conditions, including minimum rates of pay, penalty rates, maximum hours of work, and leave entitlements.

The Commission found that the agreement did not meet the requirements for approval. The agreement did not provide for minimum rates of pay for employees that were at least equal to the applicable award rates. Additionally, the agreement did not provide for penalty rates for work on Sundays, public holidays, and overtime that were at least equal to the applicable award rates. The Commission also found that the agreement did not provide for adequate leave entitlements for employees.

The Commission refused to approve the agreement. The Electrolux Home Products Adelaide Manufacturing Enterprise Agreement 2013 did not provide for fair and reasonable terms and conditions for employees. The Commission ordered that the agreement be returned to the parties for further negotiation and, if necessary, reapplication for approval.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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