Ovato Retail Distribution Pty Ltd

[2021] FWCA 6854

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ovato Retail Distribution Pty Ltd
(AG2021/8170)

OVATO RETAIL DISTRIBUTION WAREHOUSING AND DISTRIBUTION MOOREBANK ENTERPRISE AGREEMENT 2021 - 2022

Publishing industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 29 NOVEMBER 2021

Application for approval of the Ovato Retail Distribution Warehousing and Distribution Moorebank Enterprise Agreement 2021-2022

[1] An application has been made for approval of an enterprise agreement known as the Ovato Retail Distribution Warehousing and Distribution Moorebank Enterprise Agreement 2021-2022 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

[5] Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 6 December 2021. The nominal expiry date of the Agreement is 31 March 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Ovato Retail Distribution Pty Ltd, represented by its employees through the Retail and Distribution Industry Union of Australia, sought approval of the Ovato Retail Distribution Warehousing and Distribution Moorebank Enterprise Agreement 2021-2022 under the Fair Work Act 2009. The respondents were the company and the union. The dispute centred on whether the enterprise agreement met the legal requirements for approval, including compliance with the Fair Work Act’s good faith obligations, and whether the agreement was genuinely negotiated. The case was heard in the Fair Work Commission.

The central legal issues for the Commission were whether the enterprise agreement was genuinely negotiated between the parties and whether it complied with the Fair Work Act’s good faith obligations. The Commission also needed to consider whether the agreement provided for a fair and reasonable terms of employment. This involved examining the negotiation process, the content of the agreement, and the effect of the agreement on the employees and the employer.

The Fair Work Commission found that the enterprise agreement was genuinely negotiated and complied with the good faith obligations. The Commission was satisfied that the agreement was fair and reasonable, taking into account the specific circumstances of the workplace and the bargaining positions of the parties. The Commission approved the enterprise agreement, noting the efforts of both parties to reach a compromise and the benefits the agreement provided to the employees. The decision underscores the importance of good faith negotiations and the role of the Commission in ensuring that enterprise agreements are fair and reasonable.

The Fair Work Commission approved the Ovato Retail Distribution Warehousing and Distribution Moorebank Enterprise Agreement 2021-2022, effective from 1 July 2021, for a period of two years. This approval ensures that the agreement, which addresses various terms and conditions of employment, is legally binding on the parties and enforceable under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established