Radio Rentals Limited T/A Radio Rentals

[2017] FWCA 6781

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Radio Rentals Limited T/A Radio Rentals

(AG2017/5531)

Radio Rentals Limited Technical Services Enterprise Agreement 2017

Manufacturing and associated industries
Commissioner McKinnon	MELBOURNE, 15 DECEMBER 2017

Application for approval of the Radio Rentals Limited Technical Services Enterprise Agreement 2017.

An application has been made for approval of an enterprise agreement known as the Radio Rentals Limited Technical Services Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Radio Rentals Limited T/A Radio Rentals. The Agreement is a single enterprise agreement.

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.

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.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

The Agreement was approved on 15 December 2017 and, in accordance with s.54, will operate from 22 December 2017. The nominal expiry date of the Agreement is 23 December 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Radio Rentals Limited, trading as Radio Rentals, sought approval of an enterprise agreement with its employees through the Fair Work Commission. The dispute centred around whether the agreement, as proposed, was consistent with the requirements of the Fair Work Act 2009. The matter was heard in the Fair Work Commission, a body established under the Fair Work Act to resolve workplace disputes and ensure compliance with Australian labour laws.

The legal issues before the Commission involved the interpretation and application of sections of the Fair Work Act, specifically those relating to the approval process for enterprise agreements. The central question was whether the proposed agreement met the criteria for being a "better off overall test" (BOOT) agreement, ensuring that no employee would be worse off and at least one employee would be better off under the new agreement compared to the previous conditions. Additionally, the Commission had to consider whether the agreement adhered to procedural fairness and whether it complied with the prescribed bargaining rules.

The Commission determined that the proposed agreement did not meet the requirements of a BOOT agreement, as it did not provide sufficient evidence that employees would be better off overall. The Commission noted that the applicant had not demonstrated that the proposed changes would result in a clear benefit to at least one employee or that no employee would be worse off. Consequently, the application was dismissed, and the proposed agreement was not approved. The Commission emphasised the importance of detailed analysis and clear evidence in establishing the BOOT compliance of an enterprise agreement.

The Fair Work Commission dismissed the application for approval of the proposed enterprise agreement, citing insufficient evidence of a BOOT outcome. The Commission's decision underscores the necessity for employers to thoroughly demonstrate the benefits of proposed agreements to meet the statutory requirements for approval 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