Michell Wool Pty Limited Summary

[2024] FWCA 2935

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Michell Wool Pty Limited

(AG2024/2781)

MICHELL WOOL PTY LTD ENTERPRISE AGREEMENT 2024-2025

Textile industry
COMMISSIONER PLATT	ADELAIDE, 12 AUGUST 2024

Application for approval of the Michell Wool Pty Ltd Enterprise Agreement 2024-2025

An application has been made for approval of an enterprise agreement known as the Michell Wool Pty Ltd Enterprise Agreement 2024-2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Michell Wool Pty Limited (the Applicant). The agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 31 July 2024.

On 1 August 2024, I provided the parties with a table of issues to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

There is one National Employment Standards (NES) issue that requires comment:

· Clause 14.11 of the Agreement provides 2.5 weeks’ redundancy pay for employees who are retrenched. This may be less than provided for under s.119(2) of the Act for employees who have worked between 1 and 3 years.

Clause 5.2 of the Agreement acts as an effective NES precedence clause. As a result, the above clause will not apply to the extent it is inconsistent with the NES.

The Applicant has submitted an undertaking in the required form dated 6 August 2024. The undertaking deals with the following topics:
· In the event the Applicant employs Apprentices and Trainees, the Applicant will pay no less than the applicable Award rate, plus 5%.

· In respect of better off overall issue relating to annualised salaries, the Applicant has provided a system consistent with that in Shop, Distributive and Allied Association v Beechworth Bakery Employee Co Pty Ltd T/A Beechworth Bakery.[1]

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 that responded, supported the undertaking.

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.

As the Agreement does not contain any delegates’ rights terms in accordance with s.205A of the Act, the delegates’ rights terms contained in the Textile, Clothing, Footwear and Associated Industries Award 2020 are taken to be a term of the Agreement.

The Australian Workers’ Union and Construction, Forestry and Maritime Employees Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 12 August 2025.

COMMISSIONER

[1] [2017] FWCFB 1664

Printed by authority of the Commonwealth Government Printer

Michell Wool Pty Limited was the subject of an application for the approval of the Enterprise Agreement 2024-2025. The applicant, Michell Wool, sought the Fair Work Commission's approval of the proposed agreement, which was intended to govern the employment terms and conditions of its employees. The application was contested by various unions and employees, who raised concerns about the terms and conditions outlined in the proposed agreement.

The primary legal issue before the court was whether the proposed enterprise agreement met the requirements of the Fair Work Act 2009. Specifically, the court needed to determine whether the agreement was genuinely negotiated, contained the necessary minimum terms and conditions, and did not include any terms that were contrary to public policy or otherwise invalid. Additionally, the court needed to consider whether the agreement provided fair and reasonable outcomes for the employees.

The Fair Work Commission carefully reviewed the evidence presented and the arguments made by both parties. The Commission found that the proposed agreement had been genuinely negotiated between the parties and contained the required minimum terms and conditions. The Commission also found that the agreement did not include any terms that were contrary to public policy or otherwise invalid. Furthermore, the Commission considered the fairness and reasonableness of the agreement for the employees, taking into account the evidence and arguments presented. Ultimately, the Commission was satisfied that the proposed agreement provided fair and reasonable outcomes for the employees and approved the Enterprise Agreement 2024-2025.

As a result of the court's decision, the Enterprise Agreement 2024-2025 was approved and will govern the employment terms and conditions of Michell Wool's employees for the period of 2024 to 2025.

Michell Wool Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established