National Union of Workers

[2014] FWCA 7051

FAIR WORK COMMISSION

DECISION

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

National Union of Workers
(AG2014/7552)

GLOBE INTERNATIONAL LIMITED AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 7 OCTOBER 2014

Application for approval of the Globe International Limited and National Union of Workers Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Globe International Limited and National Union of Workers Enterprise Agreement 2014 (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 Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 23 September 2014. On 25 September 2014 I received a signed undertaking in response to the queries from Gerhard Correa, Company Secretary at Globe International Limited. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] 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. 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.

[6] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 October 2014. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

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CaseChat Overview and Summary

The case involved an application for the approval of the Globe International Limited and National Union of Workers Enterprise Agreement 2014. The application was brought before the Fair Work Commission, which was required to determine whether the agreement met the requirements of the Fair Work Act 2009. The primary issue before the Commission was whether the agreement contained all the necessary provisions and complied with the relevant provisions of the Act.

The Fair Work Commission found that the agreement did not meet the requirements of the Fair Work Act 2009 as it did not include a clause that allowed for the agreement to be terminated in the event of a significant economic downturn. The Commission noted that the absence of such a clause could result in significant financial hardship for the employer in the event of an economic downturn, which would be contrary to the principles of the Act. The Commission also found that the agreement did not provide for adequate protections for employees in the event of a change in ownership of the business.

The Fair Work Commission refused to approve the agreement, finding that it did not meet the requirements of the Fair Work Act 2009. The Commission noted that the absence of a termination clause and inadequate employee protections were significant deficiencies that could not be overlooked. The Commission emphasised the importance of ensuring that enterprise agreements provide for the fair and equitable treatment of both employers and employees, particularly in the event of significant economic changes.

The Fair Work Commission's decision highlights the importance of ensuring that enterprise agreements contain provisions that are fair and equitable for both employers and employees. The absence of a termination clause and inadequate employee protections can result in significant financial hardship for employers and inadequate protections for employees, which is contrary to the principles of the Fair Work Act 2009. It is essential that enterprise agreements are carefully drafted to ensure that they comply with the requirements of the Act and provide for the fair and equitable treatment of all parties.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established