DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rheem Australia Pty Ltd T/A Rheem
(AG2016/7323)

RHEEM RYDALMERE MANUFACTURING ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 20 JANUARY 2017

Application for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Rheem Rydalmere Manufacturing Enterprise Agreement 2016 (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 T/A Rheem. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

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

[4] The Agreement was approved on 20 January 2017 and, in accordance with s.54, will operate from 27 January 2017. The nominal expiry date of the Agreement is 13 September 2018.

COMMISSIONER

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 2016. The application arose from negotiations between Rheem and its employees represented by the Electrical Trades Union of Australia. The dispute centred on the terms and conditions of employment for employees at Rheem's Rydalmere manufacturing site.

The key legal issues before the Commission were whether the proposed agreement met the requirements of the Fair Work Act 2009 and whether it was in the best interests of the employees. Specifically, the Commission needed to determine if the agreement provided for minimum wages and conditions, and whether it had been made in good faith and without coercion. Additionally, the Commission considered whether the agreement facilitated productivity and efficiency while maintaining fairness for all parties.

In delivering its decision, the Commission examined the negotiation process and the terms of the proposed agreement. It noted that the agreement provided for wage increases and other benefits, and that the negotiation process appeared to have been conducted in good faith. The Commission also found that the agreement would not lead to a deterioration in the employees' overall conditions of employment and was in their best interests. As a result, the Commission approved the Rheem Rydalmere Manufacturing Enterprise Agreement 2016.

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