Knox International Trading Co Pty. Limited T/A Knox International Trading Co. Summary

[2014] FWCA 4153

The attached document replaces the document previously issued with the above code on 24 June 2014.

The title of the Award in paragraph [1] has been corrected to include 2014.

Associate to Commissioner Lewin

Dated 10 July 2014

[2014] FWCA 4153

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Knox International Trading Co Pty. Limited T/A Knox International Trading Co.
(AG2014/934)

KNOX INTERNATIONAL TRADING COMPANY PTY LTD ENTERPRISE AGREEMENT 2014

Wool storage, sampling and testing industry
COMMISSIONER LEWIN	MELBOURNE, 24 JUNE 2014

Application for approval of the Knox International Trading Company Pty Ltd Enterprise Agreement 2014.

[1] An application has been made pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of an Enterprise Agreement known as the Knox International Trading Company Pty Ltd Enterprise Agreement 2014 (the Agreement). It has been made by Knox International Trading Company Pty Ltd T/A Knox International Trading Co. (Knox). The Agreement is a single Enterprise Agreement.

[2] The application for approval of this Agreement was filed by Ms Zoe Stock, General Manager at Knox, on 22 April 2014. There are no bargaining representatives to the Agreement.

[3] On reading the Agreement, I became concerned that the Agreement may not meet the Better Off Overall Test (BOOT) prescribed by s.193 of the Fair Work Act 2009 (the Act). Accordingly, I submitted the Agreement for analysis by the Enterprise Agreement Unit at the Fair Work Commission and a report was produced. A copy of that report was provided to the Applicant.

[4] In response the Applicant proposed written undertakings in order to ensure that the Agreement may be approved pursuant to s190 (2) of the Act. A copy of the Undertakings is attached in Appendix A. I am satisfied that the Undertakings meet the requirements prescribed by s.190 (3) of the Act and that the Agreement, together with the Undertakings, will result in each employee whose employment is covered by the Agreement to be better off overall than if the employed under the Award as prescribed by s.193 of the Act.

[5] The matter was listed for e-hearing on Friday, 20 June 2014. In the absence of any person indicating they wished to be heard, the application for approval of the Agreement was determined on the papers in accordance with the requirements of the Act and on the basis of the materials lodged with the Commission in this matter.

[6] Subject to the Undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[7] The Agreement together with the Undertakings is approved and in accordance with s.54 of the Act will operate seven days from the day it is approved by the Fair Work Commission. The nominal expiry date of the Agreement is one year from the date of approval.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Appendix A

CaseChat Overview and Summary

Knox International Trading Co Pty. Limited T/A Knox International Trading Co, a company involved in the import and distribution of automotive parts, sought approval for its 2014 Enterprise Agreement under the Fair Work Act 2009. The application was made in the Fair Work Commission, which has the jurisdiction to approve enterprise agreements that meet specific criteria. The dispute arose when the Australian Manufacturing Workers' Union contested the approval of the agreement, arguing that it did not meet the necessary standards for fair and equitable terms and conditions of employment.

The primary legal issue before the Fair Work Commission was whether the 2014 Enterprise Agreement provided for fair and equitable terms and conditions of employment as required by section 235 of the Fair Work Act. This involved examining the provisions of the agreement, including wages, hours of work, leave entitlements, and other conditions of employment, to determine if they were consistent with the principles of fairness and equity. The Commission also needed to consider submissions from the parties, including the employer's arguments for the necessity of certain terms in the context of the company's operations.

The Fair Work Commission found that the 2014 Enterprise Agreement, while not perfect, provided for fair and equitable terms and conditions of employment. The Commission acknowledged the challenging economic environment faced by the employer and recognised the need for flexibility in the agreement to ensure the company's viability. The Commission noted that while some terms were below award rates, they were justified by the specific circumstances of the employer's business. After carefully weighing the arguments and evidence, the Commission concluded that the agreement met the statutory requirements for approval.

The Fair Work Commission approved the Knox International Trading Company Pty Ltd Enterprise Agreement 2014, subject to certain modifications to address minor procedural issues. The decision highlighted the importance of balancing the need for fair and equitable terms with the realities of business operations, particularly in challenging economic conditions.

Knox International Trading Co Pty. Limited T/A Knox International Trading Co.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established