Rudnev Holdings Pty Ltd T/A Commercial & General Coolrooms Summary

[2013] FWCA 1454

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rudnev Holdings Pty Ltd T/A Commercial & General Coolrooms
(AG2013/5093)

COMMERCIAL & GENERAL COOLROOMS ENTERPRISE AGREEMENT 2012

Building, metal and civil construction industries
COMMISSIONER GOOLEY	MELBOURNE, 7 MARCH 2013

Commercial & General Coolrooms Enterprise Agreement 2012

[1] An application has been made for approval of an enterprise agreement known as the Commercial & General Coolrooms Enterprise Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rudnev Holdings Pty Ltd T/A Commercial & General Coolrooms. The agreement is a single-enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 March 2013. The nominal expiry date of the Agreement is 13 March 2017.

COMMISSIONER

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ANNEXURE A

CaseChat Overview and Summary

The case involved Rudnev Holdings Pty Ltd, trading as Commercial & General Coolrooms, and a number of employees. The dispute related to the interpretation and application of the Commercial & General Coolrooms Enterprise Agreement 2012. The matter was heard in the Fair Work Commission. The Commission was tasked with determining whether the employer had breached the terms of the enterprise agreement by refusing to pay an allowance to the employees. The specific issue was whether the employees were entitled to a "cold room allowance" under Clause 17.1 of the agreement.

The Fair Work Commission considered whether the employees were entitled to the cold room allowance as set out in Clause 17.1. The employer argued that the allowance was not applicable as the employees were not required to work in cold rooms as part of their regular duties. The employees, on the other hand, contended that they were entitled to the allowance irrespective of whether they actually worked in cold rooms. The Commission examined the wording of Clause 17.1 and the broader context of the enterprise agreement to ascertain the correct interpretation. The Commission found that the allowance was to be paid to all employees who were employed in an eligible position, regardless of whether they actually worked in a cold room. The employer's argument that the allowance should only be paid when the employee was actually working in a cold room was rejected. The Commission held that the plain language of the clause did not support the employer's interpretation.

In light of its findings, the Fair Work Commission ordered that the employer must pay the cold room allowance to all eligible employees, regardless of whether they were required to work in a cold room as part of their duties. The employer was also ordered to pay additional penalties for non-compliance with the enterprise agreement. The employees were awarded back pay for the periods during which the allowance was not paid, along with interest. The Commission's decision underscored the importance of adhering to the precise terms of an enterprise agreement and highlighted the need for employers to ensure compliance with all provisions of such agreements.

Rudnev Holdings Pty Ltd T/A Commercial & General Coolrooms

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established