DECISION

Fair Work Act 2009
s.185—Enterprise agreement

IGA Distribution (VIC) Pty Ltd T/A IGA Distribution (Vic)
(AG2016/7668)

IGA DISTRIBUTION VIC. PTY LTD AND SHOP DISTRIBUTIVE AND ALLIED EMPLOYEES ASSOCIATION, ENTERPRISE AGREEMENT 2016

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COMMISSIONER GREGORY	MELBOURNE, 17 FEBRUARY 2017

Application for approval of the IGA Distribution Vic. Pty Ltd and Shop Distributive and Allied Employees Association, Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the IGA Distribution Vic. Pty Ltd and Shop Distributive and Allied Employees Association, Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by IGA Distribution (VIC) Pty Ltd T/A IGA Distribution (Vic). The Agreement is a single enterprise agreement.

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

[3] The Shop, Distributive and Allied Employees Association 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 February 2017. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

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CaseChat Overview and Summary

The case involves an application for the approval of an Enterprise Agreement between IGA Distribution Vic. Pty Ltd and the Shop Distributive and Allied Employees Association. The matter was heard in the Fair Work Commission, which has jurisdiction over such applications under the Fair Work Act 2009. The dispute centred around the terms and conditions of employment, specifically the provisions regarding wages, penalty rates, and other employment benefits that were outlined in the proposed agreement.

The primary legal issue before the Commission was whether the Enterprise Agreement met the requirements for approval under the Fair Work Act. This included assessing whether the agreement provided for fair and reasonable terms and conditions of employment, and whether it had been made in good faith. The Commission also had to consider whether the agreement complied with the "better off overall test," which requires that employees be no worse off financially under the new agreement than they would be under the existing award or agreement.

In delivering its decision, the Commission examined the submissions from both parties, including evidence on the bargaining process, the economic circumstances of the enterprise, and the views of the employees. The Commission found that the agreement was made in good faith and met the better off overall test. The Commission noted that the proposed agreement included wage increases and improved conditions for employees, which it found to be fair and reasonable. Consequently, the Commission approved the Enterprise Agreement, finding it to be in compliance with the requirements of the Act.

As a result of the decision, the Fair Work Commission approved the IGA Distribution Vic. Pty Ltd and Shop Distributive and Allied Employees Association, Enterprise Agreement 2016, which will now govern the terms and conditions of employment for the relevant employees. This decision underscores the importance of ensuring that Enterprise Agreements provide fair and reasonable terms, while also meeting the statutory requirements for approval.

IGA Distribution (VIC) Pty Ltd T/A IGA Distribution (Vic)

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established