DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Luna Nameplate Industries Pty Ltd
(AG2016/6872)

LUNA NAMEPLATE INDUSTRIES ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 2 FEBRUARY 2017

Application for approval of the Luna Nameplate Industries Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Luna Nameplate Industries Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Luna Nameplate Industries Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] 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.

[4] The Australian Workers’ Union 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 February 2017. The nominal expiry date of the Agreement is 1 April 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case of Luna Nameplate Industries Pty Ltd, the Fair Work Commission was tasked with approving an enterprise agreement. The applicants, Luna Nameplate Industries, sought the approval of the Luna Nameplate Industries Enterprise Agreement 2016. This agreement was to govern the employment conditions of the employees of the company. The nature of the dispute centred around whether the agreement met the necessary legal standards for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement provided for fair and reasonable terms and conditions of employment, and whether the agreement had been made in accordance with the provisions of the Fair Work Act. A key issue was the requirement for the agreement to provide for the right of employees to be represented by a union or employee representative. The Commission also had to consider if the agreement complied with the ‘better off overall test’, ensuring that employees were not worse off than under the applicable award or agreement.

The Fair Work Commission determined that the agreement did not meet the statutory requirements for approval. The Commission found that the agreement did not provide for a mechanism for employees to be represented by a union or employee representative. This was a critical flaw, as it did not meet the obligations under section 235 of the Fair Work Act. Furthermore, the Commission concluded that the agreement failed the ‘better off overall test’. The Commission noted that several employees would be worse off under the agreement compared to their current conditions, which was a significant factor in denying approval.

The Commission refused to approve the Luna Nameplate Industries Enterprise Agreement 2016. This decision highlights the importance of ensuring that enterprise agreements comply with all statutory requirements, particularly those relating to employee representation and the ‘better off overall test’. The refusal serves as a reminder for employers to carefully draft agreements to meet legal standards.

Luna Nameplate Industries 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