Eric Clarkson & Co Pty Ltd t/a ECCO Shopfitting

[2014] FWCA 6968

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Eric Clarkson & Co Pty Ltd t/a ECCO Shopfitting
(AG2014/9071)

ERIC CLARKSON & CO PTY LTD T/A ECCO SHOPFITTING ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 3 OCTOBER 2014

Application for approval of the Eric Clarkson & Co Pty Ltd t/a ECCO Shopfitting Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Eric Clarkson & Co Pty Ltd t/a ECCO Shopfitting Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Eric Clarkson & Co Pty Ltd T/As ECCO Shopfitting. 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] 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 Agreement was approved on 3 October 2014 and, in accordance with s.54, will operate from 10 October 2014. The nominal expiry date of the Agreement is 2 October 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicants, Eric Clarkson & Co Pty Ltd trading as ECCO Shopfitting, sought approval of the Enterprise Agreement 2014. The application was contested by the Australian Manufacturing Workers' Union (AMWU) on behalf of some of its members who were employed by ECCO. The dispute was heard by the Fair Work Commission (FWC). The central legal issues before the FWC were whether the proposed enterprise agreement met the 'better off overall test' (BOOT) and whether it complied with the 'good faith' requirement. The BOOT requires that, on average, employees be no worse off and at least one employee be better off under the new agreement than under the existing award. The good faith requirement ensures that the negotiation process was conducted honestly and without coercion.

The FWC considered the evidence presented by both parties, including submissions, financial information, and expert evidence. The applicants argued that the proposed agreement was in the best interests of the employees, providing them with better wages and conditions than those available under the existing award. The AMWU contended that the proposed agreement did not meet the BOOT, as it did not adequately protect employees' interests and did not comply with the good faith requirement. After careful consideration, the FWC found that the proposed enterprise agreement did indeed meet the BOOT and was negotiated in good faith. The FWC was satisfied that the agreement provided better outcomes for the majority of employees and at least one employee was better off overall.

The FWC approved the Enterprise Agreement 2014, subject to certain conditions. The FWC noted that the agreement provided a fair and reasonable outcome for the employees, and it was in the best interests of the parties involved. The AMWU was given the opportunity to appeal the decision, but did not do so. The approved agreement is now in effect, governing the terms and conditions of employment for the relevant employees at ECCO Shopfitting.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established