DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Sealy of Australia (N.S.W.) Pty. Ltd. T/A Sealy of Australia
(AG2019/1508)

SEALY OF AUSTRALIA (N.S.W.) PTY. LTD. AND CFMMEU - MANUFACTURING DIVISION AGREEMENT 2019-2021

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 17 JUNE 2019

Application for approval of the Sealy of Australia (N.S.W.) Pty. Ltd. and CFMMEU - Manufacturing Division Agreement 2019-2021.

[1] An application has been made for approval of a greenfields agreement known as the Sealy of Australia (N.S.W.) Pty. Ltd. and CFMMEU - Manufacturing Division Agreement 2019-2021 (Agreement). The application was made by pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Sealy of Australia (N.S.W.) Pty. Ltd. T/A Sealy of Australia.

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Maritime, Mining and Energy Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Agreement lodged contained an error at clauses 19.5 and 19.57. On 12 June 2019, the Applicant filed an amended version of the Agreement correcting this error. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[4] The Agreement does not cover all of the employees of the employer however taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Construction, Forestry, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

[6] The Agreement was approved on 17 June 2019 and, in accordance with s.54 of the Act, will operate from 24 June 2019. The nominal expiry date of the Agreement is 31 December 2021.

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Sealy of Australia (N.S.W.) Pty. Ltd., trading as Sealy of Australia, sought approval for an agreement with the Construction, Forestry, Maritime, Mining and Energy Union Manufacturing Division. The dispute centred on the terms of the proposed enterprise agreement, which aimed to govern the employment conditions of Sealy's employees. The Commission was tasked with determining whether the agreement complied with the relevant provisions of the Fair Work Act 2009.

The central legal issues for the Commission to address were whether the agreement met the criteria for approval under the Fair Work Act and whether it provided for the fair and equitable treatment of the employees. The Commission had to consider whether the agreement contained all the mandatory terms required by the legislation, and whether it was made in good faith and without any improper conduct. Additionally, the Commission assessed whether the agreement complied with the "better off overall test", ensuring that employees were not worse off financially under the new agreement.

The Commission found that the agreement was made in good faith and without any improper conduct. It also determined that the agreement contained all the mandatory terms required by the Fair Work Act and that it complied with the better off overall test. The Commission considered the evidence presented by both parties, including the submissions on the economic and operational context of the agreement. The Commission was satisfied that the agreement provided for the fair and equitable treatment of employees and that it was in the best interests of both parties. Consequently, the Commission approved the agreement.

The Fair Work Commission approved the Sealy of Australia (N.S.W.) Pty. Ltd. and CFMMEU - Manufacturing Division Agreement 2019-2021, finding it to be in compliance with the relevant provisions of the Fair Work Act 2009. The Commission determined that the agreement was made in good faith, contained all mandatory terms, and met the better off overall test. This decision ensures that the employment conditions of Sealy's employees are governed by the agreed terms, providing a fair and equitable outcome for both parties.

Sealy of Australia (N.S.W.) Pty. Ltd. T/A Sealy of Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established