Schmalz Australia Pty Ltd

[2024] FWCA 482

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Schmalz Australia Pty Ltd

(AG2024/72)

SCHMALZ AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT BELL	MELBOURNE, 2 FEBRUARY 2024

Application for approval of the Schmalz Australia Pty Ltd Enterprise Agreement 2023.

An application has been made for approval of an enterprise agreement known as the Schmalz Australia Pty Ltd Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the employer Schmalz Australia Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 10 October 2023 and the Agreement was made on 12 January 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

The Employer 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. Pursuant to s.201(3), the undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A 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 sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement was approved on 2 February 2024 and, in accordance with s.54 of the Act, will operate from 9 February 2024. The nominal expiry date of the Agreement is 1 February 2028.

DEPUTY PRESIDENT

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Schmalz Australia Pty Ltd, an employer, and the Transport Workers Union, a union, applied to the Fair Work Commission for approval of the Schmalz Australia Pty Ltd Enterprise Agreement 2023. The agreement, which was the subject of negotiation between the employer and the union, proposed terms and conditions of employment for workers within the company. The union argued that the proposed agreement was fair and reasonable, while the employer raised concerns regarding the financial implications of the agreement. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009 and was in the best interests of the employees.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the provisions of the Fair Work Act. This involved examining whether the agreement contained the necessary provisions, including minimum wages and conditions, and whether it was made in good faith and without coercion. Additionally, the Commission needed to assess whether the agreement was procedurally fair and whether it provided for the proper representation of employees.

In its decision, the Fair Work Commission found that the proposed agreement met the requirements of the Fair Work Act. The Commission determined that the agreement contained all the necessary provisions and was made in good faith without any coercion. Furthermore, the Commission found that the agreement was procedurally fair, as it was made following proper consultation and negotiation processes. The Commission also concluded that the agreement provided for the proper representation of employees and was in their best interests. Therefore, the Fair Work Commission approved the Schmalz Australia Pty Ltd Enterprise Agreement 2023.

The Fair Work Commission's final order was that the Schmalz Australia Pty Ltd Enterprise Agreement 2023 be approved as a registered agreement under the Fair Work Act. The agreement will now govern the terms and conditions of employment for the employees covered by the agreement, and will be in effect until such time as it is replaced or terminated in accordance with the provisions of the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established