DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Gunnedah Leather Processors Pty Ltd
(AG2019/1275)

GUNNEDAH LEATHER PROCESSORS PTY LTD ENTERPRISE AGREEMENT (MAINTENANCE) 2019

Manufacturing and associated industries
COMMISSIONER BISSETT	MELBOURNE, 29 MAY 2019

Application for approval of the Gunnedah Leather Processors Pty Ltd Enterprise Agreement (Maintenance) 2019.

[1] An application has been made for approval of an enterprise agreement known as the Gunnedah Leather Processors Pty Ltd Enterprise Agreement (Maintenance) 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Gunnedah Leather Processors Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[4] Subject to 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.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 June 2019. The nominal expiry date of the Agreement is 13 April 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Gunnedah Leather Processors Pty Ltd, an employer, and its employees, represented by their union. The dispute centred on the application for approval of the Gunnedah Leather Processors Pty Ltd Enterprise Agreement (Maintenance) 2019, which was intended to regulate the terms and conditions of employment for the employees. The application was brought before the Fair Work Commission, which had the jurisdiction to assess the agreement under the Fair Work Act 2009.

The primary legal issues for the Commission to decide were whether the agreement complied with the statutory requirements for enterprise agreements under the Act, and whether it met the "better off overall test" (BOOT). This test required that the employees, on average, be no worse off financially under the agreement than they would be under the applicable award or safety net. The Commission also had to consider whether the agreement contained the necessary provisions to be considered a genuine enterprise agreement.

The Fair Work Commission determined that the Gunnedah Leather Processors Pty Ltd Enterprise Agreement (Maintenance) 2019 was in compliance with the statutory requirements and met the BOOT. The Commission found that the agreement was genuinely negotiated between the employer and the union, and that it provided for the employees to be no worse off financially. The agreement also contained the necessary provisions to be considered a genuine enterprise agreement. Therefore, the Commission approved the enterprise agreement, and it was registered with the Fair Work Ombudsman.

In summary, the Fair Work Commission approved the Gunnedah Leather Processors Pty Ltd Enterprise Agreement (Maintenance) 2019, finding it to be compliant with the statutory requirements, to meet the better off overall test, and to be a genuine enterprise agreement. The agreement was subsequently registered, and the employees' terms and conditions of employment were regulated by the new agreement.

Gunnedah Leather Processors 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