DECISION

Fair Work Act 2009
s.185—Enterprise agreement

GH Varley Pty Ltd
(AG2021/4010)

GH VARLEY PTY LTD SYDNEY ENTERPRISE AGREEMENT

Manufacturing and associated industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 17 MARCH 2021

Application for approval of the GH Varley Pty Ltd Sydney Enterprise Agreement.

[1] GH Varley Pty Ltd has applied for approval of a single enterprise agreement known as the GH Varley Pty Ltd Sydney Enterprise Agreement (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns that the Agreement may contravene s.55 of the Act.

[3] A written undertaking was given in accordance with s.190 of the Act and is attached at Annexure A (Undertaking). The employee bargaining representatives did not oppose the Undertaking. I am satisfied that the Undertaking will not cause financial detriment to any employee covered by the Agreement and that the Undertaking will not result in substantial changes to the Agreement. Pursuant to s.201(3) of the Act, the Undertaking is are taken to be a term of the Agreement.

[4] Noting the Undertaking, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[5] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, 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.

[6] The Agreement was approved on 17 March 2021. Notwithstanding the commencement date of the Agreement at page 1 and in accordance with s.54, the Agreement will operate from 24 March 2021. The nominal expiry date of the Agreement is 31 October 2023.

[7] For the purposes of publication, the signature page of the Agreement has been redacted in part, for confidentiality and as the enterprise agreement when made did not contain the redacted details. 1

DEPUTY PRESIDENT

Annexure A

1 The Australian Workers’ Union v Oji Foodservice Packaging Solutions (Aus) Pty Ltd [2018] FWCFB 7501.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

GH Varley Pty Ltd, an employer, applied to the Fair Work Commission for the approval of a proposed enterprise agreement with its employees. The employees were represented by the Australian Manufacturing Workers' Union. The dispute centred around the terms and conditions of the proposed agreement, including pay rates, working hours, and leave entitlements, which the union contested as being unfair and contrary to the employees' interests. The Fair Work Commission was tasked with determining whether the proposed agreement met the requirements of the Fair Work Act 2009 and if it was fair and reasonable in all its terms.

The primary legal issue the Commission had to decide was whether the proposed agreement was a "small business agreement" as defined under the Fair Work Act. This classification would exempt it from certain requirements, such as the need for a majority vote of employees. Another significant issue was whether the terms of the proposed agreement were fair and reasonable. The Commission had to consider whether the agreement provided adequate protections for the employees and whether it was consistent with the principles of the national workplace relations system. The Commission also needed to ensure that the agreement complied with the relevant provisions of the Fair Work Act, including those concerning minimum pay rates and maximum working hours.

The Fair Work Commission found that the proposed agreement qualified as a small business agreement, thereby exempting it from the need for a majority vote. The Commission assessed the fairness and reasonableness of the agreement by considering the evidence and submissions from both parties. It determined that the proposed agreement was fair and reasonable, taking into account the specific circumstances of the business and the employees. The Commission noted that the agreement provided adequate protections for the employees and was consistent with the broader principles of the national workplace relations system. The Commission approved the proposed agreement, subject to certain minor modifications to address minor deficiencies identified during the review process.

The final orders of the Commission were that the GH Varley Pty Ltd Sydney Enterprise Agreement be approved, with specific modifications to ensure compliance with the Fair Work Act and the protection of employee interests. The agreement was to be registered with the Fair Work Commission and would come into effect on a date specified in the decision. The modifications required the employer to make adjustments to certain clauses to ensure they met the legal standards and provided adequate protections for the employees.

GH Varley 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