Rheem Australia Pty Limited Summary

[2013] FWCA 7602

FAIR WORK COMMISSION

DECISION

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

Rheem Australia Pty Limited
(AG2013/9366)

RHEEM RYDALMERE MANUFACTURING ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 2 OCTOBER 2013

Application for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Rheem Rydalmere Manufacturing Enterprise Agreement 2013 ( the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

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

[3] The application was filed more than 14 days after the Agreement was made. Pursuant to s.185(3) of the Act, I am satisfied that it is fair to extend the period for filing the application.

[4] The Fair Work Commission notes and accepts the undertaking provided by the employer and it is taken to be a term of the Agreement. A copy of the undertaking is attached to this decision as Annexure A

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the ‘Australian Manufacturing Workers’ Union’ (AMWU), the Australian Workers’ Union (AWU), and the ‘Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. As required by s.201(2) I note that the Agreement covers these organisations.

[6] The Agreement is approved. In accordance with s.54(1) it will operate from 9 October 2013. The nominal expiry date of the Agreement is 1 July 2016

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Rheem Australia Pty Limited, applied to the Fair Work Commission for the approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2013. Rheem is a manufacturer of water heating products, and the proposed agreement sets out the terms and conditions of employment for its employees at the Rydalmere manufacturing facility. The application was opposed by the Australian Manufacturing Workers' Union, which argued that the proposed agreement did not meet the requirements of the Fair Work Act 2009.

The legal issues before the Commission included whether the proposed agreement provided for fair and reasonable terms and conditions of employment, and whether it complied with the "better off overall test" under the Fair Work Act. The Commission also needed to consider whether the agreement provided for appropriate protections for employees, including minimum rates of pay, leave entitlements, and dispute resolution mechanisms.

The Commission found that the proposed agreement did meet the requirements of the Fair Work Act. The agreement provided for fair and reasonable terms and conditions of employment, including minimum rates of pay and leave entitlements. The Commission also found that the agreement met the better off overall test, as it provided for a range of benefits to employees, including improved leave entitlements and the establishment of a new employee assistance program. The Commission noted that while some employees may have been better off under the existing agreement, the overall effect of the proposed agreement was to provide better terms and conditions of employment for the majority of employees.

The Commission approved the Rheem Rydalmere Manufacturing Enterprise Agreement 2013, subject to certain modifications to address the concerns raised by the opposing party. The modifications included changes to the agreement's provisions relating to shift differentials and the use of casual employees. The Commission considered that the modifications were necessary to ensure that the agreement provided for fair and reasonable terms and conditions of employment for all employees covered by the agreement.

Rheem Australia Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established