DECISION

Fair Work Act 2009
s.185—Enterprise agreement

IKEA Distribution Services Australia Pty Ltd
(AG2019/3117)

IKEA DC CDC ENTERPRISE AGREEMENT 2019

Storage services
COMMISSIONER CIRKOVIC	MELBOURNE, 18 SEPTEMBER 2019

Application for approval of the IKEA DC CDC Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the IKEA DC CDC Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by IKEA Distribution Services 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The National Union of Workers 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 was approved on 18 September 2019 and, in accordance with s.54, will operate from 21 October 2019. The nominal expiry date of the Agreement is 31 August 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves an application by IKEA Distribution Services Australia Pty Ltd for the approval of the IKEA DC CDC Enterprise Agreement 2019. The Fair Work Commission was tasked with determining whether the agreement met the requirements under the Fair Work Act 2009. The dispute centred around the negotiation process and the content of the agreement, particularly whether it adhered to the statutory obligations for minimum terms and conditions of employment.

The legal issues before the Commission were whether the agreement was genuinely negotiated and if it provided for minimum terms and conditions as required by the Fair Work Act. The Commission also needed to assess whether the agreement met the criteria for being a simple, fair, and flexible enterprise agreement. Furthermore, it was necessary to determine whether the agreement was in the best interest of the employees and the employer, and if it complied with the procedural requirements for the negotiation and approval of such agreements.

The Fair Work Commission found that the IKEA DC CDC Enterprise Agreement 2019 was genuinely negotiated and provided for the minimum terms and conditions of employment. The Commission was satisfied that the agreement was simple, fair, and flexible, and it concluded that the agreement was in the best interests of both the employees and the employer. The Commission noted that the agreement had been negotiated in accordance with the statutory requirements, and all procedural obligations had been met. As a result, the Commission approved the agreement under the Fair Work Act.

Consequently, the Commission ordered the approval of the IKEA DC CDC Enterprise Agreement 2019, effective from the date of the decision. The agreement was to apply to the employees covered by the agreement and was to be registered with the Fair Work Commission. The approval of the agreement was subject to the ongoing compliance with the Fair Work Act and any other relevant legislation.

IKEA Distribution Services 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