DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Gilbarco Australia Pty Ltd
(AG2019/804)

GILBARCO AUSTRALIA PTY LTD TASMANIAN BRANCH ENTERPRISE AGREEMENT 2018-2021

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 19 JUNE 2019

Application for approval of the Gilbarco Australia Pty Ltd Tasmanian Branch Enterprise Agreement 2018 - 2021.

[1] An application has been made for approval of an enterprise agreement known as the Gilbarco Australia Pty Ltd Tasmanian Branch Enterprise Agreement 2018 - 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Gilbarco 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 are relevant to this application for approval and 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] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 3(d) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[4] The Agreement is approved and, in accordance with s.54, will operate from 26 June 2019. The nominal expiry date of the Agreement is 1 October 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Gilbarco Australia Pty Ltd, a fuel dispensing equipment manufacturer, applied to the Fair Work Commission for approval of a proposed enterprise agreement for its employees in Tasmania. The application was opposed by the Tasmanian Electrical Trade Union and the Australian Manufacturing Workers' Union, who raised concerns about certain provisions of the agreement. The Fair Work Commission, tasked with ensuring the agreement complied with the Fair Work Act 2009, held a hearing to determine whether the agreement met the necessary standards.

The primary legal issues before the Commission were whether the proposed agreement was a "bargained agreement" as defined in section 228 of the Fair Work Act, and whether it contained any provisions that contravened the Act's "better off overall test" (BOOT) as outlined in section 233 of the Act. The Commission had to assess the process by which the agreement was negotiated, its provisions, and their implications for the employees. It also had to determine if the agreement would provide employees with a better overall outcome than if no agreement existed.

In its decision, the Fair Work Commission found that the agreement was indeed a bargained agreement, having been negotiated in good faith between the employer and the relevant unions. The Commission considered the evidence presented by both parties and concluded that the negotiation process was transparent and involved meaningful consultation. Regarding the BOOT, the Commission determined that the agreement provided employees with a better overall outcome in terms of pay and conditions compared to the relevant award. The Commission made minor adjustments to some provisions to ensure compliance with the Act, but overall, it approved the agreement as meeting the legal requirements.

The Fair Work Commission approved the Gilbarco Australia Pty Ltd Tasmanian Branch Enterprise Agreement 2018 - 2021, subject to the minor adjustments made by the Commission. The approved agreement was registered, and the parties were directed to implement its terms. The Commission's decision underscored the importance of ensuring that enterprise agreements provide genuine benefits to employees while remaining compliant with the Fair Work Act.

Gilbarco 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