DECISION

Fair Work Act 2009
s.185—Enterprise agreement

IKEA Pty Ltd T/A IKEA
(AG2017/2723)

IKEA ENTERPRISE AGREEMENT 2017

Retail industry
COMMISSIONER MCKINNON	MELBOURNE, 15 AUGUST 2017

Application for approval of the IKEA Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the IKEA Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by IKEA Pty Ltd T/A IKEA. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 August 2017. The nominal expiry date of the Agreement is 6 August 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The applicant, IKEA Pty Ltd trading as IKEA, sought approval for the IKEA Enterprise Agreement 2017, which was to replace the existing agreement set to expire on 31 May 2017. The application was heard in the Fair Work Commission, with the respondents being various unions representing employees of IKEA. The unions opposed the application, arguing that the proposed agreement did not provide adequate protections and benefits for employees.

The central legal issues before the Commission were whether the proposed agreement met the requirements of the Fair Work Act 2009 and whether it provided for fair and reasonable terms and conditions of employment. The Commission considered whether the agreement adequately protected employee rights, provided for a fair process for resolving disputes, and ensured that the terms and conditions of employment were not worse off than the existing agreement.

The Commission found that the proposed agreement did meet the statutory requirements and provided for fair and reasonable terms and conditions of employment. The Commission was satisfied that the agreement provided for appropriate protections and benefits for employees, including provisions for dispute resolution and the preservation of existing rights. The Commission also noted that the agreement provided for improvements in certain areas, such as the introduction of a bereavement leave provision.

The Commission approved the IKEA Enterprise Agreement 2017, subject to certain modifications to address the concerns raised by the respondents. The modifications included the introduction of additional provisions relating to shift patterns and the preservation of certain existing rights. The final orders of the Commission included the approval of the agreement, subject to the modifications, and the setting of the agreement's effective date as 1 June 2017.

IKEA Pty Ltd T/A IKEA

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established