DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hallmark Cards Australia Pty Ltd
(AG2017/3375)

HALLMARK CARDS AUSTRALIA LTD ENTERPRISE AGREEMENT 2017

Graphic Arts
DEPUTY PRESIDENT KOVACIC	CANBERRA, 10 NOVEMBER 2017

Application for approval of the Hallmark Cards Australia Ltd Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Hallmark Cards Australia Ltd Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hallmark Cards Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Hallmark Cards Australia Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[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 17 November 2017. The nominal expiry date of the Agreement is 30 June 2020.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Hallmark Cards Australia Pty Ltd, the Fair Work Commission was called upon to approve an enterprise agreement between the employer and the employees. The agreement was proposed to replace an existing enterprise agreement which had expired. The dispute centred on the terms and conditions of employment set out in the proposed agreement, particularly concerning shifts, penalty rates, and leave entitlements.

The legal issues the court had to decide involved whether the proposed enterprise agreement met the requirements under the Fair Work Act 2009. Specifically, the court had to determine whether the agreement was a "small business" enterprise agreement, and if it contained the necessary "protected actions" to ensure the employees were not worse off than under the previous agreement. Additionally, the court examined whether the agreement complied with the "better off overall test" which ensures that employees are not disadvantaged by the new terms.

The court concluded that the proposed agreement did meet the statutory requirements. The agreement was deemed to be a small business enterprise agreement, and it contained all necessary protected actions. The court found that the agreement would not result in employees being worse off, and it satisfied the better off overall test. The court emphasised the need for flexibility in small business agreements and the importance of considering the specific circumstances of the parties involved. The court approved the Hallmark Cards Australia Ltd Enterprise Agreement 2017, paving the way for its implementation.

Hallmark Cards 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