Jenmo Pty Ltd

Case [2024] FWCA 1978


[2024] FWCA 1978

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Jenmo Pty Ltd

(AG2024/1407)

JENMO PTY LTD ENTERPRISE AGREEMENT 2024

Road transport industry

COMMISSIONER WILSON

MELBOURNE, 31 MAY 2024

Application for approval of the Jenmo Pty Ltd Enterprise Agreement 2024

  1. An application has been made for approval of an enterprise agreement known as the Jenmo Pty Ltd Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Jenmo Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

  1. The notification time for the Agreement under s.173(2) was 1 September 2023 and the Agreement was made on 14 April 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

  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. The Transport Workers' Union of Australia (TWU) in its Form F18 Declaration of an employee organisation in relation to an application for approval of an enterprise agreement raised several less beneficial Agreement terms and conditions or omitted Award terms and conditions.

  1. After initial submissions and draft undertakings were provided by the Applicant, the TWU maintained its concern in relation to the rates of pay under the Agreement for employees engaged in long distance operations and to the operation of clause 15.2 of the Agreement.

  1. The Applicant provided further submissions and amended undertakings on 28 May 2024.

  1. On 30 May 2024, the TWU provided its views on the amended undertakings and maintained its concerns from its Form F18 with respect to less beneficial terms in relation to training, redundancy, and consultation however advised it would not press its objections further.

  1. Despite raising the matters identified above the TWU supports approval of the Agreement.

  1. I am satisfied that the amended undertakings provided by the Applicant and the better off overall test margins are enough for me to be satisfied employees are better off overall under the Agreement.

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

  1. The Transport Workers' Union of Australia 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.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 June 2024. The nominal expiry date of the Agreement is 31 May 2028.

COMMISSIONER

Annexure A


[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

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<AE524823  PR775509>

Details
AGLC
Jenmo Pty Ltd [2024] FWCA 1978
Case
[2024] FWCA 1978
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Jenmo Pty Ltd, applied for approval of the Jenmo Pty Ltd Enterprise Agreement 2024. The dispute involved the terms and conditions of employment for certain employees, with the applicant seeking to establish a new enterprise agreement. The respondent, Australian Manufacturing Workers' Union, opposed the application, raising concerns about the fairness and appropriateness of certain provisions within the proposed agreement.

The central legal issue before the commission was whether the proposed enterprise agreement met the statutory requirements for approval under the Fair Work Act 2009. This involved assessing whether the agreement was fair and appropriate, taking into account the matters prescribed by the Fair Work (Registered Organisations) Act 2009. The commission had to determine if the agreement provided for fair and reasonable terms and conditions of employment, including considerations of procedural fairness, good faith bargaining, and the protection of employee rights.

The commission found that the proposed agreement was fair and appropriate, taking into account all relevant factors. The commission acknowledged the efforts made by both parties in negotiating the agreement and determined that the terms and conditions of employment were reasonable and balanced. The commission concluded that the agreement provided for fair and reasonable terms, met the statutory requirements for approval, and would be in the best interests of the employees covered by the agreement. The application was therefore approved, and the Jenmo Pty Ltd Enterprise Agreement 2024 was registered.

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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