IKEA Pty Ltd T/A IKEA

[2023] FWCA 2729

[2023] FWCA 2729

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

IKEA Pty Ltd T/A IKEA

(AG2023/2416)

IKEA ENTERPRISE AGREEMENT 2023

Retail industry
COMMISSIONER MATHESON	SYDNEY, 25 AUGUST 2023

Application for approval of the IKEA Enterprise Agreement 2023

1. An application has been made for approval of an enterprise agreement known as the IKEA Enterprise Agreement (Agreement). The application was made by IKEA Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

1. Changes to the Act came into effect on 6 June 2023 in relation to genuine agreement. The Form F17A indicates that the notification time for the Agreement was 5 December 2022. In these circumstances and as a consequence of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Amending Act), clause 66 of Part 13 of Schedule 1 of the Act has the effect that despite the amendments made to the Act by Part 14 of Schedule 1 to the Amending Act, Part 2-4 of the Act continues to apply as if the amendments had not been made. The application has been assessed on this basis, taking into account the provisions of Part 2-4 of the Act, relating to genuine agreement, in force immediately prior to 6 June 2023.

1. The application was accompanied by a signature page that did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009 (Cth). An amended signature page was subsequently filed. I consider it appropriate in the circumstances to waive an irregularity in the form or manner in which an application was made and do so pursuant to s.586(b) of the Act.

1. I observe that certain provisions of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 7.1(d) of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

1. The Commission raised concerns in relation to whether the Agreement passed the better off overall test and invited submissions and/or undertakings. In response, the Applicant, who is also the employer covered by the Agreement, provided written undertakings. A copy of the undertakings is attached at Annexure A of this decision (Undertakings).

1. The views of each person I know is a bargaining representative for the Agreement were sought in relation to the Undertakings. Retail and Fast Food Workers Union Incorporated, a bargaining representative for the Agreement, provided its views in relation to the Undertakings indicating that the issues identified by the Commission were common with issues it discussed with the Applicant during bargaining and that in the circumstances it believed the Undertakings are appropriate.  I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)cause financial detriment to any employee covered by the Agreement; or

(b)result in substantial changes to the Agreement.

1. Pursuant to s.190(3) of the Act, I accept the Undertakings.

1. Subject to the Undertakings, and on the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to the application for approval of the Agreement have been met.

1. 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) of the Act, I note that the Agreement covers the organisation.

1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 March 2024. The nominal expiry date of the Agreement is 31 May 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE521275  PR765569>