ITW Construction Asia Pacific

Case [2023] FWCA 2170


[2023] FWCA 2170

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ITW Construction Asia Pacific

(AG2023/2016)

ITW DANDENONG SOUTH WAREHOUSE – UNITED WORKERS UNION ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries

COMMISSIONER MIRABELLA

MELBOURNE, 14 JULY 2023

Application for approval of the ITW Dandenong South Warehouse – United Workers Union Enterprise Agreement 2023.

  1. ITW Construction Asia Pacific (the Employer) has made an application for approval of an enterprise agreement known as the ITW Dandenong South Warehouse – United Workers Union Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the FW Act). The Agreement is a single enterprise agreement.

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act that commenced operation on 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the FW Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. Question 18 of the Form F17A provides that the notification time for the Agreement was 21 February 2022.

  1. Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the FW Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. Question 26.2 of the Form F17A provides that the Agreement was made on 8 June 2023.

  1. The Employer 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. The undertakings are taken to be a term of the Agreement.

  1. Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, have been met.

  1. I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (the NES). However, noting clause 4(c) 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 United Workers’ Union, 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

  1. The Agreement was approved on 14 July 2023 and, in accordance with s.54, will operate from 21 July 2023. The nominal expiry date of the Agreement is 1 May 2025.


COMMISSIONER

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Annexure A

Details
AGLC
ITW Construction Asia Pacific [2023] FWCA 2170
Case
[2023] FWCA 2170
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the United Workers Union sought approval of the ITW Dandenong South Warehouse Enterprise Agreement 2023, which sought to establish terms and conditions of employment for employees at the warehouse. The application was contested by ITW Construction Asia Pacific, the employer, who raised objections regarding the fairness and practicality of certain clauses within the proposed agreement.

The central legal issues before the Commission were whether the proposed agreement met the statutory requirements under the Fair Work Act 2009, including the provision for genuine enterprise bargaining, and whether specific terms within the agreement were fair and reasonable. The Commission had to evaluate whether the agreement provided for the minimum terms and conditions set out by the Act, and whether it was free from prohibited content and was not contrary to public policy.

The Commission carefully examined the terms and conditions proposed in the agreement, considering submissions from both parties. After thorough analysis, the Commission found that while the majority of the agreement met the legislative requirements, certain clauses did not comply with the Act. The Commission made specific modifications to these clauses to ensure they aligned with the statutory obligations. Ultimately, the Commission approved the agreement with these modifications, finding it to be fair and reasonable, and compliant with the requirements of the Fair Work Act 2009.

The final orders of the Commission approved the ITW Dandenong South Warehouse Enterprise Agreement 2023, with the modifications made to certain clauses, effective from the date of the decision.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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