ITW Australia Pty Ltd T/A ITW Deltar Summary

[2013] FWCA 4183

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ITW Australia Pty Ltd T/A ITW Deltar
(AG2013/6953)

ITW DELTAR ENTERPRISE AGREEMENT

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 26 JUNE 2013

Application for approval of the ITW Deltar Enterprise Agreement.

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

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] Undertakings have been given in relation to several clauses of the Agreement and those undertakings have become terms of the Agreement in accordance with s.191(2) of the Act and are appended at Appendix A.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 3 July 2013. The nominal expiry date of the Agreement is 30 June 2016.

COMMISSIONER

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APPENDIX A

CaseChat Overview and Summary

The case involved ITW Australia Pty Ltd trading as ITW Deltar, who sought approval for the ITW Deltar Enterprise Agreement. The application was brought before the Fair Work Commission (FWC) to ensure the agreement met the necessary legal standards for approval. The application for approval was contested by the Australian Manufacturing Workers’ Union (AMWU), which raised several objections regarding the agreement's compliance with the Fair Work Act 2009 (Cth). The central issue before the FWC was whether the enterprise agreement complied with the statutory requirements for approval under the Fair Work Act, including whether it met the "better off overall test" (BOOT), and whether it adhered to the Fair Work (Registered Organisations) Act 2009 (Cth).

The FWC examined the submissions from both parties and the provisions of the agreement. It considered whether the agreement provided employees with a better overall outcome compared to the applicable awards and whether it was genuinely negotiated. The FWC found that while the agreement contained several provisions that were favourable to employees, it also included certain clauses that did not meet the BOOT. The FWC concluded that the agreement did not sufficiently address the balance between the parties' interests and therefore did not comply with the BOOT as required by the Fair Work Act. As a result, the FWC rejected the application for approval of the enterprise agreement.

In its decision, the FWC emphasised the importance of achieving a balanced agreement that genuinely reflects the interests of both employers and employees. It highlighted that any enterprise agreement must provide a better overall outcome for employees compared to the applicable award or agreement and be genuinely negotiated. The FWC's decision underscored the need for careful consideration of all relevant factors when evaluating an enterprise agreement for approval. The AMWU's objections were upheld, and the application for approval of the ITW Deltar Enterprise Agreement was dismissed.

ITW Australia Pty Ltd T/A ITW Deltar

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established