DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Flint Group Australia Pty Ltd
(AG2019/1520)

BERENDS DRIVE ENTERPRISE AGREEMENT 2019

Clerical industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 4 JUNE 2019

Application for approval of the Berends Drive Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Berends Drive 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 Flint Group Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[4] The Agreement was approved on 4 June 2019 and notwithstanding clause 5 of the Agreement, in accordance with s.54, will operate from 11 June 2019. The nominal expiry date of the Agreement is 31 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Flint Group Australia Pty Ltd sought approval for the Berends Drive Enterprise Agreement 2019, which was negotiated with the relevant union. The dispute was brought before the Fair Work Commission, a tribunal with jurisdiction to approve and register enterprise agreements under the Fair Work Act 2009. The application hinged on whether the agreement met the statutory requirements, including being in writing, free from prohibited content, and meeting the 'better off overall' test.

The legal issues primarily revolved around whether the agreement was genuinely negotiated and whether it met the 'better off overall' requirement. This test mandates that the terms of the agreement must be at least as good as the applicable award or registered agreement for employees to be considered better off overall. The negotiation process was also scrutinised to ensure it was conducted fairly and in good faith.

The Commission found that the agreement was genuinely negotiated and contained no prohibited content. It also determined that the agreement met the 'better off overall' test as employees would be no worse off and, in some cases, better off than under the applicable award. The negotiation process was deemed to be conducted in good faith, with the union adequately representing the employees' interests. Consequently, the Commission approved the agreement.

The Fair Work Commission approved the Berends Drive Enterprise Agreement 2019 and ordered its registration. The decision underscored the importance of ensuring genuine negotiation and compliance with the statutory tests for enterprise agreements. This ruling serves as a reminder for parties to meticulously adhere to the legislative framework when negotiating and submitting agreements for approval.

Flint Group Australia 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