DECISION

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

Rheem Australia Pty Ltd
(AG2021/5326)

MOORABBIN MANUFACTURING ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 10 JUNE 2021

Application for approval of the Moorabbin Manufacturing Enterprise Agreement 2021.

[1] Rheem Australia Pty Ltd (the Applicant) has made an application for approval of an enterprise agreement known as the Moorabbin Manufacturing Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] On 1 June 2021, my Chambers contacted the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters, including through the provision of an undertaking.

[3] The Applicant has submitted an undertaking in the required form dated 3 June 2021. The undertaking defines a MySuper product as the default superannuation fund in accordance with s.194(h)(i).

[4] A copy of the undertaking has been provided to the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU), as bargaining representatives to the Agreement, and I have sought their views in accordance with s.190(4) of the Act. The AMWU did not object to the undertaking.

[5] 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.

[6] The AMWU 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.

[7] 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.

[8] 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 6 May 2024.

COMMISSIONER

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CaseChat Overview and Summary

Rheem Australia Pty Ltd recently appeared before the Fair Work Commission to seek approval of the Moorabbin Manufacturing Enterprise Agreement 2021. The applicant, Rheem, sought to establish the terms and conditions of employment for its employees at the Moorabbin manufacturing site. The dispute centred around the fairness and appropriateness of the proposed agreement in light of various legislative and regulatory requirements.

The primary legal issues before the Commission involved whether the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009. This included ensuring the agreement was not less favourable than the relevant award or registered agreement, that it complied with the good faith bargaining requirement, and whether it met the coverage requirements. Additionally, the Commission needed to assess if the agreement provided for the proper protection of employees' rights and interests, including provisions for minimum wages, penalties, and other essential working conditions.

In deliberating on these issues, the Commission undertook a thorough analysis of the agreement, considering submissions from both Rheem and the relevant unions. The Commission found that the proposed agreement did not contain any terms that were less favourable than the applicable award, and that it complied with all legislative requirements. The Commission was satisfied that Rheem had engaged in good faith bargaining and that the agreement was fair and appropriate. Consequently, the Commission approved the agreement, finding it to meet all statutory requirements.

The Fair Work Commission granted Rheem's application for the approval of the Moorabbin Manufacturing Enterprise Agreement 2021, acknowledging its compliance with the Fair Work Act 2009 and the protection of employees' rights. The approved agreement now serves as the basis for the terms and conditions of employment at the Moorabbin manufacturing site, effective from the date of approval.

Rheem Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established