Netafim Australia Pty Ltd

[2022] FWCA 4490

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Netafim Australia Pty Ltd

(AG2022/5184)

Netafim Australia Pty Ltd Enterprise Agreement 2022

Manufacturing and associated industries
DEPUTY PRESIDENT O'NEILL	MELBOURNE, 21 DECEMBER 2022

Application for approval of the Netafim Australia Pty Ltd Enterprise Agreement 2022

Netafim Australia Pty Ltd has applied for approval of an enterprise agreement known as the Netafim Australia Pty Ltd Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

The Employer 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. The undertakings are taken to be a term of the Agreement.

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.

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.

The United Workers’ Union 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.

I observe that clause 13 is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 December 2022. The nominal expiry date of the Agreement is 31 July 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Netafim Australia Pty Ltd applied for the approval of its enterprise agreement with its employees. The dispute arose over the terms and conditions of employment as stipulated in the proposed agreement. The Fair Work Commission was the tribunal tasked with reviewing and approving the agreement. The central legal issue before the Commission was whether the proposed enterprise agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was fairly and appropriately negotiated, if it complied with the procedural requirements, and if it met the 'better-off, overall test' as mandated by the Act.

The Commission examined the negotiation process and the contents of the agreement. It considered whether the agreement was made in good faith and if it contained the minimum terms and conditions required by the Act. The Commission also assessed if the agreement provided employees with a safety net of minimum wages and conditions and if it was better off overall than the applicable award or registered agreement. After evaluating the evidence and submissions, the Commission found that the agreement was fairly negotiated and met the statutory requirements. The Commission concluded that the proposed agreement provided employees with fair and reasonable terms and conditions of employment, thereby satisfying the better-off, overall test.

Following its analysis, the Fair Work Commission approved the Netafim Australia Pty Ltd Enterprise Agreement 2022. The approval meant that the agreement would become a legally binding enterprise agreement between Netafim Australia Pty Ltd and its employees. This decision ensured that the terms and conditions outlined in the agreement would govern the employment relationship moving forward. The final orders included the formal approval of the agreement, effective from the date of the Commission's decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established