Rheem Australia Pty Ltd

[2022] FWCA 856

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Rheem Australia Pty Ltd

(AG2022/434)

rheem rydalmere manufacturing enterprise agreement 2021

Manufacturing and associated industries
Commissioner Matheson	SYDNEY, 11 MARCH 2022

Application for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2021.

An application has been made for approval of an enterprise agreement known as the Rheem Rydalmere Manufacturing Enterprise Agreement 2021 (Agreement). The application was made by Rheem Australia Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

I observe that certain provisions of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 7.2 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A of this decision (Undertakings). The views of each person I know is a bargaining representative were sought and no objections were raised in relation to the Undertakings. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)cause financial detriment to any employee covered by the Agreement; or

(b)result in substantial changes to the Agreement.

Pursuant to s.190(3) of the Act, I accept the Undertakings.

Subject to the Undertakings, and on the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to the application for approval of the Agreement have been met.

The Australian Workers’ Union, “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union”. known as the Australian Manufacturing Workers’ Union and 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 they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 March 2022. The nominal expiry date of the Agreement is 9 September 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

The matter before the court involved Rheem Australia Pty Ltd, an employer, and its employees, who were members of the relevant union. The dispute centred on the application for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2021. The Fair Work Commission, through its delegate, was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009. The legal issues before the Commission included whether the agreement had been genuinely negotiated, whether it provided for the appropriate minimum terms and conditions, and whether it had been fairly and properly executed.

The Fair Work Commission considered various aspects of the negotiation process and the content of the agreement. It examined evidence of the negotiation process and the fairness of the terms. The Commission also evaluated whether the agreement contained the necessary minimum terms and conditions as stipulated by the Fair Work Act. In its reasoning, the Commission found that the agreement had been genuinely negotiated and contained the required minimum terms. It also found that the agreement had been fairly and properly executed.

Consequently, the Fair Work Commission approved the Rheem Rydalmere Manufacturing Enterprise Agreement 2021. This decision confirmed the validity of the agreement, allowing it to come into effect as per the terms outlined. The Commission's approval signified that the agreement met the statutory requirements for enterprise agreements 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