Jfk Interiors Australia Pty Ltd Summary

[2023] FWCA 172

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Jfk Interiors Australia Pty Ltd

(AG2022/5529)

JFK INTERIORS AUSTRALIA PTY LTD AND CFMMEU MANUFACTURING DIVISION ENTERPRISE AGREEMENT 2022-2025

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 19 JANUARY 2023

Application for approval of the Jfk Interiors Australia Pty Ltd and CFMMEU Manufacturing Division Enterprise Agreement 2022-2025

An application has been made for approval of an enterprise agreement known as the Jfk Interiors Australia Pty Ltd and CFMMEU Manufacturing Division Enterprise Agreement 2022-2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Jfk Interiors Australia Pty Ltd. The Agreement is a single enterprise agreement.

The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.6 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The CFMMEU 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.
The Agreement is approved and in accordance with s.54, will operate from 26 January 2023. The nominal expiry date of the Agreement is 31 October 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case before the Fair Work Commission, Jfk Interiors Australia Pty Ltd, a company engaged in the interior design and installation sector, sought approval for their Enterprise Agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) Manufacturing Division for the period 2022-2025. The dispute centred on the terms and conditions of employment, including wages, working hours, and other workplace arrangements, as stipulated in the proposed agreement.

The key legal issues before the Commission were whether the Enterprise Agreement complied with the provisions of the Fair Work Act 2009, and whether it met the "better off overall test" (BOOT) as mandated by the legislation. This test requires that the employees, on average, be no worse off financially and have at least one non-financial benefit compared to their previous conditions of employment. The Commission also had to consider if the agreement adhered to the "good faith" bargaining principle.

The Fair Work Commission found that the proposed Enterprise Agreement was compliant with the Fair Work Act and satisfied the BOOT requirement. The Commission concluded that the agreement provided several non-financial benefits to the employees, such as improved working conditions and enhanced job security. Furthermore, the agreement was negotiated in good faith, as evidenced by the thorough discussions and compromises made between the parties. Consequently, the Commission approved the Enterprise Agreement, allowing it to come into effect from the specified period.

As a result of the approval, the Enterprise Agreement between Jfk Interiors Australia Pty Ltd and the CFMMEU Manufacturing Division for the years 2022-2025 is now in force, governing the employment terms and conditions for the employees within the company.

Jfk Interiors Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established