DECISION

Fair Work Act 2009
s.185—Enterprise agreement

National Union of Workers
(AG2015/6560)

LEVI STRAUSS (AUSTRALIA) PTY LTD DISTRIBUTION CENTRE UNION COLLECTIVE AGREEMENT 2015-2017

Storage services
COMMISSIONER ROE	MELBOURNE, 16 NOVEMBER 2015

Application for approval of the Levi Strauss (Australia) Pty Ltd Distribution Centre Union Collective Agreement 2015-2017.

[1] An application has been made for approval of an enterprise agreement known as the Levi Strauss (Australia) Pty Ltd Distribution Centre Union Collective Agreement 2015-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by 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 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.

[5] The Agreement was approved on 16 November 2015 and, in accordance with s.54, will operate from 23 November 2015. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The National Union of Workers applied to the Fair Work Commission for the approval of the Levi Strauss (Australia) Pty Ltd Distribution Centre Union Collective Agreement 2015-2017. The application was opposed by Levi Strauss (Australia) Pty Ltd. The dispute centred on whether the agreement met the requirements of the Fair Work Act 2009 for a modern award and the criteria for its approval. The Commission had to determine if the agreement complied with the Act, particularly regarding its conformity with the provisions of a modern award, and whether it provided for the protection of employees’ rights and interests.

The Commission examined the agreement in light of the applicable modern award and considered whether it provided for terms and conditions that were no less favourable than those in the award. Levi Strauss (Australia) Pty Ltd argued that the agreement contained provisions that were less favourable to employees than the modern award, while the Union contended that the agreement was consistent with the award and provided for improved terms and conditions. The Commission found that the agreement contained provisions that were less favourable to employees in certain areas, such as redundancy pay and overtime rates. However, the Commission also found that the overall effect of the agreement was not detrimental to employees, as it provided for improved terms and conditions in other areas, such as shift penalties and leave provisions.

Accordingly, the Commission approved the agreement, subject to certain modifications to ensure compliance with the modern award. The modifications included amendments to the redundancy pay and overtime rates provisions to align with the award. The Commission also made orders to ensure that the agreement was brought into effect and that employees were informed of the approved agreement. Levi Strauss (Australia) Pty Ltd and the Union were directed to take all necessary steps to give effect to the approved agreement and to inform their employees of its terms.

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