DECISION

Fair Work Act 2009
s.185—Enterprise agreement

National Union of Workers
(AG2017/6134)

PENTAL PRODUCTS PTY LTD AND NUW PRODUCTION ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 22 JANUARY 2018

Application for approval of the Pental Products Pty Ltd and NUW Production Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Pental Products Pty Ltd and NUW Production Enterprise Agreement 2017 (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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement lodged contained errors at clauses 5.2, 14.2.1, 18.2.2, 22.2.6, 30.1.2 and 30.4.2. On 18 and 19 January 2018, the Applicant filed amended versions of the Agreement pursuant to s.586 of the Act. I am satisfied that the corrections should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[6] 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 January 2018. The nominal expiry date of the Agreement is 22 September 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the Pental Products Pty Ltd and National Union of Workers Production Enterprise Agreement 2017. The Pental Products Pty Ltd, an employer, sought approval for the enterprise agreement, which aimed to govern the employment terms and conditions of its workers. The National Union of Workers, representing the employees, contested the application on several grounds, including that the agreement did not meet the requirements for a valid enterprise agreement under the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement was a "genuine" enterprise agreement as defined by section 172 of the Act and whether it complied with the "better off overall test" outlined in section 180 of the Act. The Commission had to assess whether the agreement was negotiated in good faith, contained the prescribed minimum terms, and ensured that the employees would be no worse off financially or in terms of other benefits compared to their previous conditions of employment.

The Commission determined that the agreement was indeed a genuine enterprise agreement. It found that the negotiation process was conducted in good faith and that the agreement contained all the prescribed minimum terms. The Commission also concluded that the agreement satisfied the better off overall test. The agreement provided employees with improved conditions, such as increased wages and better working conditions, without compromising any existing entitlements. Therefore, the application for approval was granted.

The Fair Work Commission approved the Pental Products Pty Ltd and National Union of Workers Production Enterprise Agreement 2017, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would govern the employment terms and conditions of the workers until a new agreement was negotiated or until the agreement was terminated in accordance with the Fair Work Act 2009.

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