DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Penguin Random House Australia Pty Ltd T/A United Book Distributors
(AG2016/1035)

UNITED BOOK DISTRIBUTORS ENTERPRISE AGREEMENT 2016

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COMMISSIONER LEE	MELBOURNE, 8 JUNE 2016

Application for approval of the United Book Distributors Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the United Book Distributors Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Penguin Random House Australia Pty Ltd T/A United Book Distributors. 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] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 June 2016. The nominal expiry date of the Agreement is 31 March 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Penguin Random House Australia Pty Ltd, trading as United Book Distributors, applied to the Fair Work Commission for approval of the United Book Distributors Enterprise Agreement 2016. The agreement, if approved, would regulate the employment terms and conditions for employees of United Book Distributors, which distributes books published by Penguin Random House. The application arose under the Fair Work Act 2009, which requires certain enterprise agreements to be approved by the Fair Work Commission to ensure they meet the 'better off overall test' and do not undermine the safety net of minimum entitlements.

The primary legal issue before the Commission was whether the proposed agreement met the statutory requirements under the Fair Work Act, particularly the better off overall test. This test requires that employees be no worse off financially and have at least one non-financial benefit. The Commission also needed to consider if the agreement complied with the safety net provisions, ensuring it did not undermine minimum wages and conditions. Additionally, the Commission had to ensure the agreement did not contain any terms that were contrary to public policy or unenforceable.

The Fair Work Commission found that the proposed agreement did meet the better off overall test. Employees would receive a wage increase and several non-financial benefits, such as improved working conditions and job security provisions. The Commission concluded that the agreement did not undermine the safety net of minimum entitlements and was not contrary to public policy. The Commission approved the agreement on the basis that it provided a fair and reasonable outcome for the employees, while also meeting the statutory requirements under the Fair Work Act.

The Commission issued an approval certificate for the United Book Distributors Enterprise Agreement 2016, effective from the date of the decision. This approval allows the agreement to be registered with the Fair Work Commission and enforced as a binding legal document between the employer and the employees. The decision ensures that the terms and conditions outlined in the agreement will govern the employment relationship moving forward, subject to the statutory requirements and protections under the Fair Work Act.

Penguin Random House Australia Pty Ltd T/A United Book Distributors

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established