Rheem Australia Pty Ltd T/A Rheem Australia Summary

[2022] FWCA 3016

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Rheem Australia Pty Ltd T/A Rheem Australia

(AG2022/3413)

Rheem Thermal Revesby Manufacturing Enterprise Bargaining Agreement 2022

Manufacturing and associated industries
DEPUTY PRESIDENT EASTON	SYDNEY, 31 AUGUST 2022

Application for approval of the Rheem Thermal Revesby Manufacturing Enterprise Bargaining Agreement 2022.

Rheem Australia Pty Ltd T/A Rheem Australia (the Employer) has made an application for the approval of the Rheem Thermal Revesby Manufacturing Enterprise Bargaining Agreement 2022 (the Agreement). The application was made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings, a copy of which are attached as Annexure A to this decision. The undertakings can be accepted under s.190 of the Act because I am satisfied that they will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement pursuant to s.191 of the Act.

Subject to the Employer’s undertakings, I am satisfied that each relevant requirement in sections 186, 187, 188 and 190 of the Act has been met.

I note that Clause 22(1) – Termination of Employment and Clause 23 – Personal Leave are potentially inconsistent with the National Employment Standards (NES). Noting the undertaking provided by the Employer, 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) was a bargaining representative for the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the AMWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 September 2022. The nominal expiry date of the Agreement is 1 July 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Rheem Australia Pty Ltd, trading as Rheem Australia, applied for approval of the Rheem Thermal Revesby Manufacturing Enterprise Bargaining Agreement 2022 before the Fair Work Commission. The dispute centred on whether the proposed agreement met the criteria for authorisation under the Fair Work Act 2009. Rheem Australia sought to establish a new enterprise agreement that would cover its employees at the Revesby manufacturing facility. The application required the Commission to consider the agreement's compliance with procedural fairness and its overall fairness to the employees involved.

The central legal issues the Commission had to address were whether Rheem Australia followed the correct procedures in negotiating the agreement and whether the terms of the agreement were fair and reasonable. The Commission examined the process Rheem Australia undertook to negotiate the agreement, including whether there was genuine consultation with the employees and their representatives. Additionally, the Commission assessed the fairness of the agreement's terms, focusing on the balance of benefits and obligations for both parties.

After careful consideration, the Commission concluded that Rheem Australia had followed the necessary procedural steps in negotiating the agreement. The Commission found that there was genuine consultation and that the agreement was negotiated in good faith. Regarding the fairness of the agreement, the Commission determined that the terms were reasonable and balanced, taking into account the economic circumstances and the needs of the employees. The Commission approved the Rheem Thermal Revesby Manufacturing Enterprise Bargaining Agreement 2022, finding it met the requirements for authorisation.

The final orders of the Commission included the approval of the Rheem Thermal Revesby Manufacturing Enterprise Bargaining Agreement 2022, effective from the date of the decision. The Commission also directed that the agreement be registered with the Fair Work Commission and that the terms be implemented in accordance with the agreement. This decision ensured that the new enterprise agreement would provide a fair and balanced framework for the employees and the employer moving forward.

Rheem Australia Pty Ltd T/A Rheem Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established