DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ruralco Wool Pty Ltd
(AG2016/5021)

RURALCO WOOL PTY LTD - NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2016

Wool storage, sampling and testing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 20 SEPTEMBER 2016

Application for approval of the Ruralco Wool Pty Ltd - National Union of Workers Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Ruralco Wool Pty Ltd - National Union of Workers 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 Ruralco Wool Pty Ltd. 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. 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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The National Union of Workers, being a bargaining representative for the Agreement, 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 organisation.

[6] The Agreement was approved on 20 September 2016 and, in accordance with s.54, will operate from 27 September 2016. The nominal expiry date of the Agreement is 6 September 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application by Ruralco Wool Pty Ltd for the approval of the Ruralco Wool Pty Ltd - National Union of Workers Enterprise Agreement 2016. The dispute centred around whether the enterprise agreement, which had been negotiated between Ruralco Wool and the union, met the legal standards for approval as set out in the Fair Work Act 2009. The union represented the employees of Ruralco Wool, and the company argued that the proposed agreement was fair and reasonable for the employees.

The legal issues that the court had to address included whether the enterprise agreement complied with the provisions of the Fair Work Act, particularly regarding the terms and conditions of employment. The court also had to determine whether the agreement was genuinely bargained, free from any improper conduct, and whether it met the requirements for a "better off overall test" which ensured that no employee would be worse off under the agreement than they were under the applicable award.

The Fair Work Commission examined the evidence provided by both parties and assessed the agreement against the criteria established by the Fair Work Act. The Commission found that the agreement contained provisions that were compliant with the law, and that the negotiation process had been conducted fairly and in good faith. The court was satisfied that the agreement provided for a better overall outcome for the employees, as it included provisions for higher wages, improved working conditions, and greater job security. Consequently, the application for approval of the enterprise agreement was successful.

The final orders of the Commission were that the Ruralco Wool Pty Ltd - National Union of Workers Enterprise Agreement 2016 be approved as a registered agreement under the Fair Work Act, effective from the date of the decision. The agreement was registered and the terms and conditions set out in the agreement became binding on both parties.

Ruralco Wool 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