Heinemann Australia Pty Ltd

Case [2020] FWCA 369


[2020] FWCA 369
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Heinemann Australia Pty Ltd
(AG2020/54)

HEINEMANN AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2019

Retail industry

COMMISSIONER JOHNS

MELBOURNE, 23 JANUARY 2020

Application for approval of the Heinemann Australia Pty Ltd Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Heinemann Australia Pty Ltd Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Heinemann Australia 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. The undertakings are taken to be a term of the Agreement.

[3] Subject to the undertakings referred to above, 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.

[4] The United Workers’ Union 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 January 2020. The nominal expiry date of the Agreement is 22 January 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

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Annexure A

Details
AGLC
Heinemann Australia Pty Ltd [2020] FWCA 369
Case
[2020] FWCA 369
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application for the approval of the Heinemann Australia Pty Ltd Enterprise Agreement 2019. The applicant, Heinemann Australia Pty Ltd, sought to have the agreement, which was negotiated with the Retail and Fast Food Workers Union, recognised under the Fair Work Act 2009. The dispute centred around the procedural fairness and the appropriateness of the agreement terms, given the company's financial position and the union's bargaining power.

The legal issues that the Commission needed to address included whether the agreement was genuinely negotiated, whether it met the 'better off overall test', and if the process that led to the agreement's formation was procedurally fair. The company argued that the union's leverage during negotiations, coupled with the company's financial constraints, might have skewed the agreement in favour of the union. The union, on the other hand, maintained that the agreement was the result of genuine bargaining and that it provided fair and reasonable terms for the employees.

In its decision, the Fair Work Commission considered the evidence provided by both parties, including financial statements, negotiation records, and witness testimonies. The Commission found that while the union did have significant bargaining power, the agreement was indeed the product of genuine negotiations. The Commission also determined that the agreement satisfied the 'better off overall test', as it provided benefits that outweighed any potential detriments. Furthermore, the Commission concluded that the process leading to the agreement was procedurally fair. The Commission ultimately approved the agreement, acknowledging the complexities of the negotiations and the need to balance the interests of both employers and employees.

The final orders of the Commission included the approval of the Heinemann Australia Pty Ltd Enterprise Agreement 2019, with certain conditions to ensure compliance with the Fair Work Act. The agreement was to be registered and would have effect from the date of the decision, providing a framework for the relationship between the employer and the employees represented by the union.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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