Readings Pty Ltd

Case [2022] FWCA 3492


[2022] FWCA 3492

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Readings Pty Ltd

(AG2022/4074)

Readings Enterprise Agreement 2022

Retail industry

DEPUTY PRESIDENT COLMAN

MELBOURNE, 10 OCTOBER 2022

Application for approval of the Readings Enterprise Agreement 2022

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

  1. The Retail and Fast Food Workers Union Incorporated (RAFFWU) raised an objection to the approval of the Agreement on the basis that the Agreement may not have been made by a majority of employees who cast a valid vote (see ss 182(1) and 188(1)(b)). The concern related to the eligibility of casual employees to vote on the proposed agreement, because at least one casual who voted was not employed (that is, not engaged to work – casuals are generally not employed between engagements) during the access period for the Agreement (see Appeal by Kmart Australia Limited [2019] FWCFB 7599 (Kmart) at [31]-[36], and CFMMEU v Noorton Pty Ltd[2018] FWCFB 7224 (Noorton) at [32] and [33]). Of 119 votes, 61 were cast in favour of approving the Agreement. The application was listed for mention on 7 October 2022, during which Readings provided further details of the voting group. On 10 October 2022 RAFFWU advised the Commission that it withdrew its objection to the approval of the Agreement.

  1. I am satisfied that the Agreement was made in accordance with s 182(1). Although it transpired that three voting casuals were not engaged to work during the access period and were not therefore employees ‘employed at the time who will be covered by the agreement’ (see ss 180(2) and 181(1) and Noorton), this did not affect the outcome of the vote (see Kmart at [43]). This is so because one of the three casuals is known to have voted ‘no’. Even if both of the other casuals voted to approve the Agreement, such that the ‘yes’ vote should be reduced by two, the Agreement was still approved by a majority of employees who cast a valid vote.

  1. On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

  1. 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.

  1. The Agreement was approved on 10 October 2022. The nominal expiry date of the Agreement is 10 October 2025.

DEPUTY PRESIDENT

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Details
AGLC
Readings Pty Ltd [2022] FWCA 3492
Case
[2022] FWCA 3492
Decision Date

CaseChat Overview and Summary

In the matter of Readings Pty Ltd, the Fair Work Commission was presented with an application for the approval of the Readings Enterprise Agreement 2022. The dispute involved the company and the Retail and Fast Food Workers Union, with the latter acting on behalf of the employees. The core issue at hand was whether the proposed agreement met the legal requirements for approval under the Fair Work Act 2009, particularly focusing on its compliance with the provisions regarding minimum wages and conditions. The company argued that the agreement was fair and reasonable, while the union contended that certain terms did not align with the mandated minimum standards.

The central legal issues the Commission needed to address were whether the agreement provided for the minimum rates of pay and conditions as stipulated by the relevant awards, and whether it met the requirements for "better off overall" for the employees. The Commission also considered the fairness and reasonableness of the agreement's provisions, including any provisions that went beyond the minimum standards. The company presented evidence to show that the agreement would benefit employees through additional benefits and protections, whereas the union argued that the proposed conditions did not sufficiently enhance the employees' overall position.

In its decision, the Commission examined the agreement clause by clause, assessing each against the backdrop of the relevant awards and the minimum standards set by the Fair Work Act. The Commission found that the agreement provided for the minimum rates of pay and conditions and did not contain any terms that were less favourable than those stipulated in the applicable awards. Additionally, the Commission concluded that the agreement was fair and reasonable, as it provided for additional benefits that went beyond the minimum requirements, thereby improving the overall position of the employees. Based on these findings, the Commission approved the Readings Enterprise Agreement 2022.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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