Glassons Australia Limited T/A Glassons

[2023] FWCA 2531

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Glassons Australia Limited T/A Glassons

(AG2023/2191)

GLASSONS ENTERPRISE AGREEMENT 2023

Retail industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 11 AUGUST 2023

Application for approval of the Glassons Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Glassons Enterprise Agreement 2023 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Glassons Australia Limited T/A Glassons (the Applicant). The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 23 May 2023 and the Agreement was made on 29 June 2023. Accordingly, the genuine agreement requirements are assessed under the Act as those applying before 6 June 2023 and the better off overall test is that applying on and from 6 June 2023[1].

In the first instance I raised some concerns with the Applicant regarding the operation of the annualised salary provisions found at clause 4.9 of the Agreement. The Applicant has provided me with detailed explanations of how those salaries operate and an actual example of such a salary to allow me to conduct further analysis for BOOT purposes. I am now satisfied that the operation of that provision will not create any issues that would prevent approval.

Further, while I had concerns regarding the 12-month reconciliation process for annualised salaries, the Applicant directed my attention to the findings of the Full Court of the Federal Court in Qantas Airways Limited v Flight Attendants Association of Australia[2] and the existence of essentially identical provisions in Awards such as the Clerks - Private Sector Award 2020. Given that decision and the precedent established in Awards of the FWC, I am satisfied that the 12-month reconciliation process does not prevent approval of the Agreement.

I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 11 August 2027.

DEPUTY PRESIDENT

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

[2] Qantas Airways Limited v Flight Attendants Association of Australia [2020] FCAFC 227 at [68].

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Glassons Australia Limited, trading as Glassons, which applied for approval of the Glassons Enterprise Agreement 2023. The application was brought under the Fair Work Act 2009. The parties to the dispute included Glassons, the employer, and various employee representatives. The nature of the dispute centred on the terms and conditions set forth in the proposed enterprise agreement and whether it met the legal standards for approval under the Act.

The primary legal issues that the Commission was required to address were whether the agreement had been made in accordance with the requirements of the Fair Work Act and whether it was in the best interests of the employees. Specifically, the Commission needed to determine if the agreement had been made fairly, if it complied with the procedural fairness requirements, and if it provided for fair and reasonable terms and conditions. The Commission also needed to assess if the agreement was likely to lead to improved productivity, efficiency, and profitability without adversely affecting the employees.

In reaching its decision, the Commission examined the negotiation process and the fairness of the terms and conditions outlined in the proposed agreement. The Commission considered evidence regarding the consultation process, the extent of employee participation, and whether the agreement provided for fair compensation and working conditions. The Commission concluded that the agreement had been made fairly and met the legal standards for approval. The Commission found that the agreement was likely to lead to improved outcomes for both the employer and the employees, including better productivity and job security, without disadvantaging the employees.

Consequently, the Commission approved the Glassons Enterprise Agreement 2023. The approval was based on the finding that the agreement was fair and reasonable and met all the statutory requirements for approval under the Fair Work Act. The decision was made in the interest of maintaining harmonious industrial relations and ensuring that the terms of the agreement would benefit both the employer and the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established