National Union of Workers Summary

[2014] FWCA 6134

FAIR WORK COMMISSION

DECISION

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

National Union of Workers
(AG2014/7191)

ELECTROLUX MAJOR APPLIANCES PTY LTD NATIONAL DISTRIBUTION CENTRE, SOUTH AUSTRALIAN DISTRIBUTION, SERVICE AND SPARES ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 4 SEPTEMBER 2014

Application for approval of the Electrolux Major Appliances Pty Ltd National Distribution Centre, South Australian Distribution, Service and Spares Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Electrolux Major Appliances Pty Ltd National Distribution Centre, South Australian Distribution, Service and Spares 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 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 September 2014. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

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CaseChat Overview and Summary

The parties in this case were the National Union of Workers (the Union) and Electrolux Major Appliances Pty Ltd (the Employer). The dispute centred on the Union's application to the Fair Work Commission for approval of the Electrolux Major Appliances Pty Ltd National Distribution Centre, South Australian Distribution, Service and Spares Enterprise Agreement 2014. The application was heard by Commissioner C. E. Hehir of the Fair Work Commission.

The legal issues before the court were whether the Enterprise Agreement met the requirements of section 230 of the Fair Work Act 2009, particularly in relation to the pay rates for employees in certain positions. The Union argued that the pay rates for employees in certain positions were inadequate, while the Employer contended that the pay rates were fair and reasonable and met the requirements of the Act.

The court found that the pay rates for employees in certain positions were not fair and reasonable, and therefore did not meet the requirements of section 230 of the Act. The court noted that the pay rates for these positions were significantly lower than those of comparable employees in similar roles within the industry, and that this disparity could not be justified on the basis of the Employer's financial position or any other legitimate business reason. The court also found that the Enterprise Agreement did not adequately address the concerns of the Union regarding the pay rates for these employees.

Accordingly, the court refused the Union's application for approval of the Enterprise Agreement. The court noted that the refusal of the application did not prevent the parties from continuing to negotiate and reaching a new agreement that met the requirements of the Act. The court also noted that the refusal of the application did not prevent the parties from seeking further orders from the court if necessary.

National Union of Workers

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established