DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SGS Australia Pty Ltd
(AG2016/1586)

SGS AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 25 JULY 2016

Application for approval of the SGS Australia Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the SGS Australia Pty Ltd 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 SGS Australia 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement was approved on 25 July 2016 and, in accordance with s.54, will operate from 1 August 2016. The nominal expiry date of the Agreement is 31 May 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the Australian Manufacturing Workers’ Union sought approval of the SGS Australia Pty Ltd Enterprise Agreement 2016. The company opposed the application, raising concerns about the agreement’s provisions on pay rates, shift patterns, and other employment conditions. The matter was heard by Deputy President R M Wright.

The legal issues central to this case revolved around whether the provisions of the proposed enterprise agreement met the requirements set out in the Fair Work Act 2009. Specifically, the company contested whether the agreement adequately protected employees' interests and whether it complied with the provisions of the Act, including those relating to the “better off overall test” and the “no disadvantage test.” The company also questioned whether the agreement's terms were negotiated in good faith and whether they provided for procedural fairness.

In delivering the decision, Deputy President Wright examined the evidence presented by both parties, focusing on the negotiation process, the fairness of the terms, and their compliance with the statutory requirements. The Deputy President found that the agreement was negotiated in good faith and that the terms were fair and reasonable. The proposed agreement met the “better off overall test” as it provided for improved conditions without causing significant detriment to any employee. The Deputy President also determined that the agreement did not disadvantage any employee compared to their previous conditions of employment, satisfying the “no disadvantage test.” Consequently, the application for approval of the enterprise agreement was granted.

The Fair Work Commission approved the SGS Australia Pty Ltd Enterprise Agreement 2016, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would apply to the employees covered by it. The company and the union were directed to take all necessary steps to give effect to the approved agreement.

SGS Australia 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