Regency Shower Screens

Case [2022] FWCA 780


[2022] FWCA 780

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Regency Shower Screens

(AG2022/261)

Regency Shower Screens Rowville Enterprise Agreement 2020

Manufacturing and associated industries

COMMISSIONER CIRKOVIC

MELBOURNE, 3 MARCH 2022

Application for approval of the Regency Shower Screens Rowville Enterprise Agreement 2020

  1. Regency Shower Screens (the Applicant) has made an application for approval of an enterprise agreement known as the Regency Shower Screens Rowville Enterprise Agreement 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

  1. The matter was allocated to my Chambers on 21 February 2022.

  1. On 21 February 2022, my Chambers sent correspondence to the parties seeking to address concerns with certain aspects of the Agreement and invited the parties to address these matters. The concerns were as follows:

  • Chambers sought an amended signatory page that complied with Fair Work Regulation 2.06A.

  • Chambers requested submissions on agreement pre-approval requirements, including voting notification, the provision of the Agreement and the explanation of agreement terms.

  • Parties were notified that should the Agreement be approved; the approval decision will note that the Agreement will commence 7 days following approval pursuant to s.54(1)(a) of the Act.

  • The dispute resolution term contained in Clause 17 did not specifically state that employees are entitled to be represented.

  • Clause 7.1 regarding redundancy could be inconsistent with the National Employment Standards however the NES precedence term at clause 5 of the Agreement is deemed sufficient to resolve this NES concern.

  • Chambers raised better off overall concerns regarding Junior Apprentice (Stage 1 & 2) rates of pay.

  1. The Applicant has submitted an undertaking in the required form dated 23 February 2022. The undertaking deals with the following topics:

  • The Applicant confirmed that employees are entitled to be represented in all stages of the Dispute Resolution Procedure.

  • Regarding the better off overall concern regarding junior apprentices, the Applicant provided rates of pay that are above the award.

  1. A copy of the undertaking has been provided to the bargaining representative and I have sought its view in accordance with s.190(4) of the Act. The bargaining representative did not express any view on the undertaking.

  1. The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

  1. The Construction, Forestry, Mining and Energy Union, 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) of the Act I note that the Agreement covers this organisation.

  1. I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 September 2023.

COMMISSIONER

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Details
AGLC
Regency Shower Screens [2022] FWCA 780
Case
[2022] FWCA 780
Decision Date

CaseChat Overview and Summary

Regency Shower Screens Pty Ltd applied to the Fair Work Commission for approval of the Regency Shower Screens Rowville Enterprise Agreement 2020. Regency is a manufacturer of shower screens and is a party to an enterprise agreement with the Australian Manufacturing Workers' Union. Regency sought approval of the agreement in light of the company's restructuring and financial difficulties, and concerns about the impact of the agreement on its ability to remain commercially viable.

The legal issues before the Commission were whether the enterprise agreement was genuinely intended to be a bargain, whether it was fairly negotiated, and whether it was in the best interests of the employees. Regency argued that the agreement was not fairly negotiated and was not in the best interests of the employees, given the company's financial position. The union argued that the agreement was fairly negotiated and was in the best interests of the employees.

The Commission found that the enterprise agreement was genuinely intended to be a bargain and was fairly negotiated. The Commission also found that the agreement was in the best interests of the employees, despite the company's financial difficulties. The Commission noted that the agreement contained provisions that were beneficial to the employees, such as provisions for redundancy payments and job security. The Commission also noted that the agreement contained provisions that were designed to assist the company in its restructuring, such as provisions for flexibility in the workforce. The Commission concluded that the agreement was in the best interests of the employees and approved the enterprise agreement.

The Fair Work Commission approved the Regency Shower Screens Rowville Enterprise Agreement 2020. The approval was subject to certain conditions, including a requirement that the company provide the union with information about its financial position and any changes to its business operations. The union and Regency were also required to meet to discuss the implementation of the agreement and to address any issues that arose. The approval of the agreement ensures that the employees of Regency Shower Screens Pty Ltd are protected by a fair and reasonable enterprise agreement, while also allowing the company to continue to operate in a financially sustainable manner.

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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