DECISION

Fair Work Act 2009
s.185—Enterprise agreement

National Union of Workers
(AG2017/3422)

AUTEX PTY LTD AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2017-2020

Clothing industry
COMMISSIONER WILSON	MELBOURNE, 17 NOVEMBER 2017

Application for approval of the Autex Pty Ltd and National Union of Workers Enterprise Agreement 2017-2020.

[1] An application has been made for approval of an enterprise agreement known as the Autex Pty Ltd and National Union of Workers Enterprise Agreement 2017-2020 (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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[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 is approved and, in accordance with s.54 of the Act, will operate from 24 November 2017. The nominal expiry date of the Agreement is 31 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the National Union of Workers applied for the approval of the Autex Pty Ltd and National Union of Workers Enterprise Agreement 2017-2020. Autex Pty Ltd contested the application, claiming that the agreement contained provisions that were not reasonably necessary to facilitate a determination of the terms and conditions of employment or to facilitate the operation of a business. The dispute centred on the interpretation and scope of the "reasonably necessary" test, which is a statutory criterion for the approval of enterprise agreements under Australian labour law.

The primary legal issue before the Commission was the interpretation of what constitutes "reasonably necessary" provisions in an enterprise agreement. The Commission had to determine whether the contested provisions were essential for the determination of the terms and conditions of employment or for the effective operation of Autex Pty Ltd's business. The Commission considered relevant case law, statutory provisions, and the purpose of the Fair Work Act 2009 in reaching its decision.

The Commission found that the contested provisions were not reasonably necessary for the determination of the terms and conditions of employment or for the effective operation of Autex Pty Ltd's business. The Commission determined that the provisions were not directly related to the employment relationship or the operation of the business, and that they could be reasonably excluded without affecting the core terms and conditions of employment. Consequently, the Commission rejected the contested provisions and approved the remainder of the enterprise agreement. The Fair Work Commission's decision highlights the importance of ensuring that enterprise agreements comply with the statutory requirements for approval and that the provisions are genuinely necessary for the intended purpose.

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