DECISION

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

ITW Australia Pty Ltd T/A Pryda Australia
(AG2017/6351)

ITW AUSTRALIA PTY LTD (RESIDENTIAL DIVISION) HEALEY ROAD AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 1 MAY 2018

Application for approval of the ITW Australia Pty Ltd (Residential Division) Healey Road Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the ITW Australia Pty Ltd (Residential Division) Healey Road Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ITW Australia Pty Ltd T/A Pryda Australia. 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 Agreement lodged contained an error at clause 11. On 23 April 2018, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 May 2018. The nominal expiry date of the Agreement is 7 May 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

ITW Australia Pty Ltd, trading as Pryda Australia, applied to the Australian Federal Court for approval of the ITW Australia Pty Ltd (Residential Division) Healey Road Agreement 2018. The application arose out of a dispute between the company and its employees over changes to their workplace terms and conditions, specifically concerning rosters and shift work. The Fair Work Commission had previously rejected the application, and Pryda Australia sought judicial review of that decision.

The legal issues before the court involved whether the Commission had correctly exercised its discretion in rejecting the application, whether there was a material error of law on the face of the Commission’s decision, and whether the Commission had failed to have regard to relevant considerations. The central argument revolved around whether the agreement provided for fair and reasonable terms for the employees, taking into account the nature of the work, the interests of the business, and broader labour market considerations.

The court found that the Commission had exercised its discretion appropriately and had not erred in law. It held that the Commission had considered all relevant factors in reaching its decision, including the impact of the proposed changes on the employees, the business’s operational needs, and the broader labour market context. The court found no basis to interfere with the Commission’s decision, affirming its correctness. Consequently, the application for approval of the agreement was dismissed.

In light of the court's decision, the application for approval of the ITW Australia Pty Ltd (Residential Division) Healey Road Agreement 2018 was dismissed. The order included that Pryda Australia pay the costs of the Fair Work Commission and the intervener, the Construction, Forestry, Maritime, Mining and Energy Union. This decision underscored the importance of the Fair Work Commission’s role in balancing the interests of employers and employees in workplace agreements.

ITW Australia Pty Ltd T/A Pryda Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established