DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kalari Pty Ltd
(AG2019/416)

KALARI PTY LTD (CEDUNA WORKSHOP) ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER PLATT	ADELAIDE, 21 MAY 2019

Application for approval of the Kalari Pty Ltd (Ceduna Workshop) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Kalari Pty Ltd (Ceduna Workshop) Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Kalari Pty Ltd. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 3 May 2019.

[3] On 14 May 2019, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 15 May 2019. The undertaking deals with the following topics:

• For the purposes of clause 16.2 of the Agreement, employees will receive an extra $0.50 per hour to their relevant minimum hourly wage.

• The definition of a shift worker will be for the purposes of the National Employment Standards (NES).

• For the purposes of clause 28 and 29 of the Agreement, annual leave will accrue progressively and will accumulate from year to year.

• For the purposes of clause 34 of the Agreement, personal leave will accrue progressively and will accumulate from year to year.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 21 February 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Kalari Pty Ltd was before the Fair Work Commission in an application to approve the Kalari Pty Ltd (Ceduna Workshop) Enterprise Agreement 2019. The agreement was submitted for approval under the Fair Work Act 2009. The dispute centred on whether the agreement met the requirements for approval, including whether it was made in good faith, free from coercion, and met the “better off overall test”.

The central legal issue was whether the agreement was a “single interest” enterprise agreement, as the applicant claimed, or a “multi-enterprise” agreement, as the objectors argued. A “single interest” agreement requires approval from the Fair Work Commission, while a “multi-enterprise” agreement requires approval from the Australian Building and Construction Commission. The distinction is crucial because the processes and criteria for approval differ significantly between the two bodies. Another issue was whether the agreement met the “better off overall test”, ensuring employees were not worse off compared to their previous conditions.

The Commission found that the agreement was indeed a “single interest” agreement, as it only covered employees at the Ceduna Workshop and did not extend to other entities or workplaces. The Commission also found that the agreement was made in good faith, free from coercion, and met the “better off overall test”. The evidence showed that employees were better off overall, with improved conditions and benefits. The Commission approved the agreement based on these findings.

The Fair Work Commission approved the Kalari Pty Ltd (Ceduna Workshop) Enterprise Agreement 2019, finding it to be a valid “single interest” agreement that met all legal requirements for approval. The decision ensures that the employees covered by the agreement benefit from improved terms and conditions of employment.

Kalari Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established