DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Mr Ben Greeneklee
(AG2015/6466)

ELECTROLUX HOME PRODUCTS DUDLEY PARK ADMINISTRATION EMPLOYEES ENTERPRISE AGREEMENT 2015

Clerical industry
DEPUTY PRESIDENT BULL	SYDNEY, 11 DECEMBER 2015

Application for approval of the Electrolux Home Products Dudley Park Administration Employees Enterprise Agreement 2015

[1] An application has been made by Electrolux Home Products Pty Ltd (the applicant) for the approval of an enterprise agreement known as the Electrolux Home Products Dudley Park Administration Employees Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

Employees fairly chosen

[2] The Agreement covers administrative and clerical employees employed by the applicant. As per the requirement under s.186(3) of the Act, I am satisfied that the group of employees to be covered by the Agreement was fairly chosen based on the operational distinction of the employees chosen.

Consultation term

[3] The consultation term under cl.7 of the Agreement does not meet the requirements under ss.205(1)(a) of the Act. In particular, the consultation term only requires the employer to consult with employees “where there are opportunities for the company to do so” 1. Under s.205 of the Act, consultation is required regarding changes to regular roster or ordinary hours.

[4] Pursuant to s.205(2) of the Act, the model consultation term at Schedule 2.3 of the Fair Work Regulations 2009 will be taken to be a term of the Agreement. A copy of the model term is attached at Annexure A of this decision.

Better off overall test

[5] With respect to the better off overall test (BOOT) under s.193 of the Act, the rates of pay provided under the Agreement are significantly higher than rates of pay provided under the relevant reference instruments, being the:

i. Clerks Private Sector Award 2010;
ii. Professional Employees Award 2010; and
iii. Manufacturing and Associated Industries and Occupations Award 2010

[6] Taking into account the higher rates of pay under the Agreement when compared to the Award, I am satisfied that the Agreement results in employees being better off under the Agreement.

Approval

[7] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[8] The Agreement is approved. In accordance with s.54(1), the Agreement will operate from 18 December 2015. The nominal expiry date of the Agreement is 30 September 2017.

DEPUTY PRESIDENT

Annexure A

1 At cl.7.2

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Electrolux Home Products Pty Ltd, sought approval of the Electrolux Home Products Dudley Park Administration Employees Enterprise Agreement 2015 from the Fair Work Commission. The application was made under section 233 of the Fair Work Act 2009. The respondent, the Australian Manufacturing Workers' Union, did not oppose the application but sought various amendments to the agreement. The applicant argued against the proposed changes, asserting that they were not in the best interests of the employees or the business.

The primary legal issue before the Commission was whether the proposed amendments to the enterprise agreement were necessary to ensure the agreement met the 'better off overall test' as required by section 235 of the Fair Work Act 2009. This test required that, on balance, the agreement should be better for the employees than the applicable award or safety net. The Commission had to weigh the union's submissions against the applicant's arguments and consider whether the amendments would indeed provide a better outcome for the employees.

The Fair Work Commission considered the submissions and evidence from both parties. The Commission found that some of the proposed amendments were in the best interests of the employees and the business. However, certain other amendments were not deemed necessary. After careful consideration, the Commission approved the enterprise agreement with some modifications. The approved agreement was deemed to meet the better off overall test and was thus suitable for registration.

The Fair Work Commission approved the Electrolux Home Products Dudley Park Administration Employees Enterprise Agreement 2015, with specific amendments, under section 233 of the Fair Work Act 2009. The approved agreement was registered and became a legally binding enterprise agreement between the applicant and the employees covered by the agreement.

Mr Ben Greeneklee

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established