DECISION

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

Rheem Australia Pty Ltd T/A Rheem
(AG2018/5329)

RHEEM RYDALMERE MANUFACTURING ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 9 APRIL 2019

Application for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Rheem Rydalmere Manufacturing Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rheem Australia Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] The “Automotive, Food, Metals, Engineering, printing & Kindred Industries Union” known as the Australian Manufacturing Workers Union (AMWU); Australian Workers’ Union (AWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) have given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisations.

[4] The Fair Work Commission (FWC) received correspondence dated 27 March 2019, which included further material in support of the application together with Undertakings made by and duly signed by the General Manager Human Resources, proposed to FWC pursuant to s.190 of the Act (the Undertakings). A copy of the undertakings is attached in Annexure A.

[5] I am prepared to accept the Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement. I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 April 2019. The nominal expiry date of the Agreement is 13 September 2021.

COMMISSIONER

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Rheem Australia Pty Ltd, trading as Rheem, applied to the Fair Work Commission for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2018. The application involved various terms and conditions of employment for employees at Rheem's Rydalmere manufacturing facility, and the matter was heard in the Fair Work Commission.

The central legal issue before the Commission was whether the agreement met the "better off overall test" as stipulated by the Fair Work Act 2009. This test requires that the terms of the enterprise agreement must provide employees with at least the same or better conditions than they would have under the applicable award or safety net award. Additionally, the Commission needed to ensure that the agreement adhered to procedural fairness and did not contravene any relevant laws or principles.

The Commission found that the Rheem Rydalmere Manufacturing Enterprise Agreement 2018 satisfied the better off overall test. The agreement provided employees with improved conditions in several areas, including wages, leave entitlements, and certain flexibility provisions. The Commission was satisfied that the agreement was negotiated in good faith and that the process met the necessary procedural requirements. Consequently, the Commission approved the agreement.

The final orders of the Commission included the approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2018, effective from the date of the decision. This approval meant that the terms and conditions set out in the agreement would apply to the relevant employees, superseding any conflicting terms from the applicable award.

Rheem Australia Pty Ltd T/A Rheem

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established