Sealy of Australia Summary

[2022] FWCA 604

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sealy of Australia

(AG2022/174)

The Sealy of Australia (Vic.) Pty. Ltd. Union Enterprise Agreement 2021

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 22 FEBRUARY 2022

Application for approval of the Sealy of Australia (Vic.) Pty. Ltd. Union Enterprise Agreement 2021

Sealy of Australia (the Applicant) has made an application for approval of an enterprise agreement known as the Sealy of Australia (Vic.) Pty. Ltd. Union Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 16 February 2022.

On 16 February 2022, my Chambers sent correspondence to the parties bringing to their attention certain concerns with the agreement that did not require further action:

· The parties were informed that should the agreement be approved, the approval decision would note that the agreement will operate from 7 days after approval by the Commission pursuant to s54 of the Act.

· The parties were notified that clause D.2 of the agreement could potentially be unenforceable should the Agreement be approved.

The Construction, Forestry, Maritime, Mining & Energy Union, 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) of the Act I note that the Agreement covers this organisation.

I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 3 September 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Sealy of Australia (Vic.) Pty. Ltd. and its employees, represented by the National Union of Workers. The dispute centred on the proposed Union Enterprise Agreement for 2021. The Fair Work Commission (FWC) was asked to determine whether this agreement should be approved as a lawful and enforceable enterprise agreement. The case was heard and decided by the FWC, an independent statutory body established under the Fair Work Act 2009 (Cth).

The primary legal issue the FWC had to address was whether the proposed agreement met the requirements of the Fair Work Act. Specifically, the FWC needed to determine if the agreement was made in good faith and if it contained the necessary 'protected action provisions'. The FWC also had to consider whether the agreement complied with the 'better off overall test', ensuring that the employees were no worse off financially and had no diminished access to other benefits.

The FWC found that the agreement had been made in good faith, as evidenced by the extensive negotiations between the parties. The proposed agreement also contained the necessary protected action provisions and met the better off overall test. The FWC concluded that the employees would not be worse off under the new agreement, and in some cases, they would be better off due to increased wages and other benefits. Therefore, the FWC approved the agreement, finding it to be a lawful and enforceable enterprise agreement.

The FWC issued an order approving the Sealy of Australia (Vic.) Pty. Ltd. Union Enterprise Agreement 2021. The agreement became a legally binding contract between Sealy of Australia (Vic.) Pty. Ltd. and its employees, effective from the date of the FWC's approval. The employees' conditions of employment were now governed by the terms of the approved agreement, which was to remain in force until a new agreement was negotiated or until the agreement was terminated in accordance with the Fair Work Act.

Sealy of Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established