DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Koko Black Premium Pty Ltd
(AG2019/3604)

KOKO BLACK CREATIVE CENTRE ENTERPRISE AGREEMENT 2019

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MANSINI	MELBOURNE, 28 OCTOBER 2019

Application for approval of the Koko Black Creative Centre Enterprise Agreement 2019.

[1] Koko Black Premium Pty Ltd has applied for approval of a single enterprise agreement known as the Koko Black Creative Centre Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about whether the Agreement passes the “better off overall” test. Further information was provided in relation to these concerns.

[3] Written undertakings were given in accordance with s.190 of the Act (attached at Annexure A) (Undertakings). The bargaining representatives did not oppose the Undertakings. 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. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[4] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act. In accordance with s.201(2), I note that the Agreement covers this organisation.

[6] The Agreement was approved on 28 October 2019 and, in accordance with s.54, will operate from 4 November 2019. The nominal expiry date of the Agreement is 28 October 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Koko Black Premium Pty Ltd, a company involved in the production of premium leather goods, was before the Fair Work Commission in an application for the approval of the Koko Black Creative Centre Enterprise Agreement 2019. The dispute arose as the company sought to implement changes to the terms and conditions of employment for its workers, including alterations to pay rates and conditions of work, which were contested by the employees. The Fair Work Commission was required to determine whether the proposed agreement complied with the statutory requirements of the Fair Work Act 2009 and if it was made in good faith.

The central legal issues before the Commission were whether the agreement was genuinely negotiated between the parties, whether it complied with the provisions of the Fair Work Act, and whether it contained terms that were procedurally and substantively fair. The Commission examined the negotiation process, the content of the agreement, and the compliance with the procedural fairness requirements. The company argued that the changes were necessary for business efficiency and competitiveness, while the employees' representatives contended that the proposed changes would adversely affect the workers' terms and conditions.

In its decision, the Fair Work Commission found that the agreement was indeed made in good faith and was the product of genuine negotiations. The Commission held that the changes proposed in the agreement were reasonable and necessary to meet the business needs of Koko Black Premium Pty Ltd. It was satisfied that the agreement contained terms that were procedurally and substantively fair and did not disadvantage the employees to an unreasonable degree. The Commission approved the Koko Black Creative Centre Enterprise Agreement 2019, recognising its compliance with the legislative framework and its fairness in balancing the interests of both the employer and the employees.

As a result of the approval, the new enterprise agreement came into effect, incorporating the changes to the terms and conditions of employment as proposed by Koko Black Premium Pty Ltd. The Fair Work Commission's decision provided certainty for both the company and its employees, ensuring that the agreement met the legal standards required for approval.

Koko Black Premium 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