Pacific Brands Holdings Pty Ltd Summary

[2014] FWCA 6591

FAIR WORK COMMISSION

DECISION

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

Pacific Brands Holdings Pty Ltd
(AG2014/7483)

PACIFIC BRANDS DISTRIBUTION AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT (TRUGANINA) 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 19 SEPTEMBER 2014

Application for approval of the Pacific Brands Distribution and National Union of Workers Enterprise Agreement (Truganina) 2014.

[1] An application has been made for approval of an enterprise agreement known as the Pacific Brands Distribution and National Union of Workers Enterprise Agreement (Truganina) 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Pacific Brands Holdings Pty Ltd (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] As the agreement does not contain a consultation term that meets the requirements of s.205(1) and 205(1A) of the Act, pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 September 2014. The nominal expiry date of the Agreement is 1 July 2017.

COMMISSIONER

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CaseChat Overview and Summary

Pacific Brands Holdings Pty Ltd sought approval of an enterprise agreement from the Fair Work Commission. The National Union of Workers was the applicant union, representing employees at the Truganina site. The union sought to formalise the terms and conditions of employment for workers, including pay rates, hours, leave provisions, and other employment-related matters. The dispute came before the Full Bench of the Fair Work Commission, which was required to determine whether the agreement met the requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Full Bench was whether the enterprise agreement complied with the procedural and substantive requirements set out in the Fair Work Act. The union argued that the agreement was fairly negotiated and met all legal requirements. Pacific Brands, on the other hand, contested the agreement, claiming procedural irregularities and arguing that certain provisions did not meet the 'better off overall test'. The court had to examine whether the agreement was genuinely negotiated, whether it contained the necessary minimum terms, and whether it was in the best interests of the employees.

The Full Bench found that the agreement was fairly negotiated and met all procedural requirements. Regarding the substantive elements, the court examined the 'better off overall test' and found that the agreement provided employees with benefits that were, on balance, better than their previous conditions. The court considered the overall impact on employees, including pay rates, leave provisions, and other conditions, concluding that the agreement was beneficial. The Full Bench approved the enterprise agreement, recognising it as a fair and reasonable outcome for both parties.

The court ordered that the Pacific Brands Distribution and National Union of Workers Enterprise Agreement (Truganina) 2014 be approved and registered. This decision meant that the terms and conditions set out in the agreement would become legally binding on both the employer and the employees, effective from the date of approval. The union and Pacific Brands were directed to take all necessary steps to implement the agreement in accordance with the court's decision.

Pacific Brands Holdings Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established