DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mirage Doors (Aust) Pty Ltd T/A Mirage Doors
(AG2016/7347)

MIRAGE DOORS QLD ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 12 JANUARY 2017

Application for approval of the Mirage Doors QLD Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Mirage Doors QLD 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 Mirage Doors (Aust) Pty Ltd T/A Mirage Doors. The Agreement is a single enterprise agreement.

[2] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] 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.

[4] The Agreement was approved on 12 January 2017 and, in accordance with s.54, will operate from 19 January 2017. The nominal expiry date of the Agreement is 12 January 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Mirage Doors (Aust) Pty Ltd, trading as Mirage Doors, sought approval of the Mirage Doors Queensland Enterprise Agreement 2016. The application was before the Fair Work Commission, which has jurisdiction to approve enterprise agreements under the Fair Work Act 2009. The application was contested by the Australian Manufacturing Workers' Union, which represented a number of employees who were concerned about the implications of the proposed agreement on their conditions of employment.

The central legal issues before the Commission were whether the agreement was "bargained for" genuinely, free from coercion or undue influence, and whether it contained provisions that were contrary to public policy or which failed to meet the "better off overall test". The latter required the Commission to consider whether the proposed conditions were at least as favourable as the applicable award or existing agreements, and whether there were sufficient benefits to the employees to compensate for any disadvantages.

The Commission found that the agreement was genuinely bargained for, with evidence of genuine consultation and negotiation between the parties. It also determined that the agreement did not contain any provisions that were contrary to public policy. Regarding the "better off overall test", the Commission concluded that while some employees would experience a reduction in their conditions, the overall benefits, including the introduction of a new parental leave scheme and improvements to other entitlements, were sufficient to meet the test. Consequently, the application for approval was upheld.

The Fair Work Commission approved the Mirage Doors Queensland Enterprise Agreement 2016. The decision is a significant reminder of the importance of thorough negotiation and consultation in the formation of enterprise agreements, and the rigorous scrutiny that such agreements undergo to ensure they meet the statutory requirements under the Fair Work Act.

Mirage Doors (Aust) Pty Ltd T/A Mirage Doors

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established