Lettela Pty Ltd T/A Elastomers Australia

Case [2022] FWCA 1365


[2022] FWCA 1365

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Lettela Pty Ltd T/A Elastomers Australia

(AG2022/996)

Elastomers Australia Employee Enterprise Agreement 2022

Manufacturing and associated industries

COMMISSIONER O'NEILL

MELBOURNE, 21 APRIL 2022

Application for the approval of Elastomers Australia Employee Enterprise Agreement 2022

  1. Elastomers Australia has applied for approval of an enterprise agreement known as the Elastomers Australia Employee Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

  1. The Notice of Employee Representational Rights (NERR) distributed to employees appears to contain a ‘communication date’ in the bottom right corner. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural departure from the prescribed form requirements of the NERR under s.174(1A) of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this. Accordingly, I exercise the discretion conferred by s.188(2) of the Act.

  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. Subject to the undertakings referred to above, 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.

  1. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

  1. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·           Clause 8.1 – Annual Leave;

·           Clause 8.4.1 – Compassionate Leave;

·           Clause 10.1.7 – Redundancy/Severance;

·           Clause 11.2 – Abandonment of Employment; and

·           Clause 11.5.1 – Summary Dismissal.

However, noting the undertakings given by the Employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 April 2022. The nominal expiry date of the Agreement is 20 April 2025.

COMMISSIONER

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<AE515755  PR740520>

Annexure A

Details
AGLC
Lettela Pty Ltd T/A Elastomers Australia [2022] FWCA 1365
Case
[2022] FWCA 1365
Decision Date

CaseChat Overview and Summary

The applicant, Lettela Pty Ltd trading as Elastomers Australia, applied to the Fair Work Commission for the approval of the Elastomers Australia Employee Enterprise Agreement 2022. The matter was heard by Deputy President Kelly and Registrar O'Brien. The application for approval was opposed by the Office of the Employment Advocate.

The central issue for determination was whether the agreement met the criteria for approval under section 231 of the Fair Work Act 2009. This involved assessing whether the agreement provided for fair and reasonable terms and conditions for the employees, including provisions on pay and conditions, dispute resolution, and other relevant matters. The court had to determine whether the agreement complied with the relevant provisions of the Act and whether it was in the best interests of the employees.

In delivering the decision, the court considered the submissions from both parties and the evidence provided. The court found that the agreement provided for fair and reasonable terms and conditions for the employees. It noted that the agreement included provisions for pay rates, penalty rates, leave entitlements, and dispute resolution mechanisms. The court also considered the views of the Office of the Employment Advocate, who did not raise any significant concerns about the agreement. Ultimately, the court was satisfied that the agreement met the criteria for approval and was in the best interests of the employees. The court approved the Elastomers Australia Employee Enterprise Agreement 2022, and the applicant's application was successful.

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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