DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Electrolux Home Products Pty Ltd
(AG2019/2775)

ELECTROLUX HOME PRODUCTS PTY LTD HEATHERTON DISTRIBUTION ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 24 SEPTEMBER 2019

Application for approval of the Electrolux Home Products Pty Ltd Heatherton Distribution Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Electrolux Home Products Pty Ltd Heatherton Distribution Enterprise Agreement 2019 (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 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. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, 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.

[4] The National Union of Workers 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) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 October 2019. The nominal expiry date of the Agreement is 1 May 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Electrolux Home Products Pty Ltd sought approval for the Heatherton Distribution Enterprise Agreement 2019, which aimed to regulate employment terms and conditions for its employees at the Heatherton distribution centre. The application was brought before the Fair Work Commission, which was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009. The application was contested by the Australian Manufacturing Workers' Union, which raised concerns about the proposed changes to employee entitlements and the process through which the agreement was negotiated.

The central legal issues revolved around whether the agreement complied with the procedural and substantive requirements set out in the Fair Work Act. Procedurally, the union argued that the agreement had not been genuinely bargained and that Electrolux had failed to provide adequate information to employees. Substantively, the union contested certain clauses within the agreement that it believed unfairly disadvantaged employees by reducing their entitlements and not adequately protecting their rights. The Commission had to consider whether the agreement was made in good faith, provided for the proper protection of employees, and met the 'better off overall test'.

The Fair Work Commission found that the agreement was not procedurally sound as Electrolux had not demonstrated that it had genuinely bargained with the union, particularly in failing to provide necessary information to the union during the negotiation process. The Commission also found that certain clauses within the agreement did not meet the better off overall test, as they reduced employee entitlements without providing commensurate benefits. Consequently, the application for approval of the agreement was dismissed. The Commission highlighted the importance of genuine bargaining and the need for employers to provide comprehensive information to unions to facilitate meaningful negotiations.

In its decision, the Commission did not grant approval to the Electrolux Home Products Pty Ltd Heatherton Distribution Enterprise Agreement 2019. It directed the parties to recommence negotiations in a manner that adhered to the principles of genuine bargaining and to ensure that any future agreement met all statutory requirements. The decision underscored the necessity for employers to engage fairly with employee representatives and to consider the impact of proposed changes on employee entitlements.

Electrolux Home Products 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