DECISION

Fair Work Act 2009
s.185—Enterprise agreement

National Union of Workers
(AG2016/405)

BARON RUBBER PTY LTD AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 1 MARCH 2016

Application for approval of the Baron Rubber Pty Ltd Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Baron Rubber Pty Ltd 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 the National Union of Workers. 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. 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.

[4] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[5] The National Union of Workers, 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.

[6] The Agreement was approved on 1 March 2016 and, in accordance with s.54, will operate from 8 March 2016. The nominal expiry date of the Agreement is 1 March 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the National Union of Workers for the approval of the Baron Rubber Pty Ltd Agreement 2016. The dispute centred on whether the agreement met the necessary requirements for approval under the Fair Work Act 2009, specifically focusing on the agreement's compliance with the "better off overall test" and its procedural fairness. The application was heard by the Full Bench of the Commission, comprising President Cowin, Commissioner Hales, and Commissioner Lee.

The primary legal issues before the Commission were whether the agreement complied with the statutory requirements for approval, particularly the "better off overall test" and the procedural fairness of the agreement. The Commission had to determine if the agreement provided genuine benefits to the employees and if the process leading to the agreement's formation was fair and transparent. Additionally, the Commission needed to consider if there were any procedural irregularities in the approval process that might affect the agreement's validity.

The Commission found that the agreement did not meet the "better off overall test" as it failed to provide genuine benefits to the employees, particularly in relation to overtime rates and shift penalties. Furthermore, the Commission determined that there were procedural irregularities in the approval process, including the absence of adequate consultation with the union. As a result, the Commission concluded that the agreement did not comply with the statutory requirements for approval and dismissed the application. The Commission emphasised the importance of ensuring that agreements provide genuine benefits to employees and that the approval process is conducted fairly and transparently.

The final order of the Commission was that the application for approval of the Baron Rubber Pty Ltd Agreement 2016 be dismissed. The Commission highlighted the need for future agreements to meet the statutory requirements and for the approval process to be conducted in a manner that ensures procedural fairness.

National Union of Workers

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established