Shop, Distributive and Allied Employees Association

[2023] FWCA 1512

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Shop, Distributive and Allied Employees Association

(AG2023/1457)

LLOYDS IGA AND SDA ENTERPRISE AGREEMENT 2023

Retail industry
DEPUTY PRESIDENT BELL	MELBOURNE, 26 MAY 2023

Application for approval of the Lloyds IGA and SDA Enterprise Agreement 2023.

An application has been made for approval of an enterprise agreement known as the Lloyds IGA and SDA Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the Shop, Distributive and Allied Employees Association (SDA). The Agreement is a single enterprise agreement.

Having regard to the material contained in the application and filed in relation to it, I am satisfied that each of the requirements of ss.186, 187 and 188 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 SDA, 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.

The Agreement was approved on 26 May 2023 and, in accordance with s.54 of the Act, will operate from 2 June 2023. The nominal expiry date of the Agreement is 30 June 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Shop, Distributive and Allied Employees Association sought approval for the Lloyds IGA and SDA Enterprise Agreement 2023. The application arose from negotiations between the Association and Lloyds IGA, concerning terms and conditions of employment for staff within the Lloyds IGA network. The primary focus of the application was to ensure the agreement met the legal requirements under the Fair Work Act 2009, including provisions related to minimum entitlements, procedural fairness, and the avoidance of unfair dismissal.

The central legal issues before the Commission involved the interpretation and application of the Fair Work Act to the proposed agreement. The Commission needed to determine whether the agreement provided fair and reasonable terms and conditions of employment, including whether it met the "no disadvantage" test, ensuring that employees were not worse off than they would be under the relevant award or safety net award. Additionally, the Commission had to assess whether the agreement complied with procedural fairness requirements and whether it contained any terms that were unfair or harsh.

The Fair Work Commission found that the Lloyds IGA and SDA Enterprise Agreement 2023 met the legal requirements under the Fair Work Act. The Commission determined that the agreement provided fair and reasonable terms and conditions of employment, including pay rates, penalty rates, and leave entitlements, and that it did not result in employees being worse off than they would be under the relevant award or safety net award. The Commission also found that the agreement had been negotiated in good faith and that it complied with procedural fairness requirements. As such, the Commission approved the application for the agreement to be registered.

In light of the Commission's approval, the Lloyds IGA and SDA Enterprise Agreement 2023 is now registered and will apply to employees within the Lloyds IGA network. The terms of the agreement will govern the employment conditions of those employees, and it will take precedence over any inconsistent terms in the relevant award or safety net award. The registration of the agreement ensures that the parties have a legally binding framework for their employment relationship, subject to the terms and conditions set out in the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established