IKEA Distribution Services Australia T/A IKEA

[2013] FWCA 8662

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

IKEA Distribution Services Australia T/A IKEA
(AG2013/10933)

IKEA DISTRIBUTION SERVICES AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2013

Storage services
COMMISSIONER ROE	MELBOURNE, 1 NOVEMBER 2013

Application for approval of the IKEA Distribution Services Australia Pty Ltd Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the IKEA Distribution Services Australia Pty Ltd Enterprise Agreement 2013 (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 T/A IKEA (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 23 October 2013. On 29 October 2013 I received a signed undertaking in response to the queries from Jason Coglan, Distribution Service Provider Manager AU, at the Applicant. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] 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. 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.

[6] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 November 2013. The nominal expiry date of the Agreement is 31 August 2016.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, IKEA Distribution Services Australia Pty Ltd, trading as IKEA, applied for the approval of the IKEA Distribution Services Australia Pty Ltd Enterprise Agreement 2013. The application was brought by the company seeking to finalise the terms and conditions of employment for its employees as set out in the agreement. The dispute primarily concerned the fairness and compliance of the proposed agreement with relevant labour laws and regulations.

The central legal issues that the Commission had to address were whether the agreement met the requirements for approval under the Fair Work Act 2009, particularly concerning the procedural fairness in the bargaining process and the substantive fairness of the terms and conditions set out in the agreement. The Commission needed to ensure that the agreement was made in good faith, that it provided for the proper characterisation of employees, and that it did not adversely affect employees' ability to exercise their workplace rights.

The Commission conducted a thorough review of the bargaining process and the terms of the agreement. It found that the bargaining process was conducted in good faith and that the agreement was procedurally fair. Furthermore, the substantive terms of the agreement were deemed fair and reasonable, considering the economic context and the need to maintain a productive and efficient workplace. The Commission approved the agreement, finding it to be free from any unfair or discriminatory provisions and compliant with the relevant statutory provisions.

The Commission's decision resulted in the formal approval of the IKEA Distribution Services Australia Pty Ltd Enterprise Agreement 2013, thereby setting the terms and conditions of employment for the employees covered by the agreement. This approval ensures that the agreement will govern the employment relationship between IKEA and its employees, subject to any further amendments or variations that may be agreed upon or determined by the Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established