Somero Pty Ltd

[2013] FWCA 2529

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Somero Pty Ltd
(AG2013/4712)

SOMERO COLLECTIVE ENTERPRISE AGREEMENT

Vehicle industry
DEPUTY PRESIDENT MCCARTHY	PERTH, 26 APRIL 2013

Application for approval of the Somero Collective Enterprise Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Somero Collective Enterprise Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] 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.

[3] I had some concerns regarding clause six paragraph one in the Agreement. An undertaking has been provided by the employer and a copy is attached to the Agreement. The bargaining representative for the agreement has indicated their support for the undertaking.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is four years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Circuit and Family Court of Australia, Somero Pty Ltd applied for the approval of a collective enterprise agreement, which was the subject of a dispute between the applicant and its employees. The employees, represented by a union, sought amendments to the agreement, arguing it did not adequately address certain workplace conditions and entitlements. The court was tasked with determining whether the agreement, as proposed by Somero Pty Ltd, complied with the relevant provisions of the Fair Work Act 2009.

The court examined several legal issues, primarily whether the proposed enterprise agreement met the statutory requirements for approval under the Fair Work Act. This included whether the agreement provided for minimum terms and conditions, including the national minimum wage, penalty rates, and leave entitlements. The court also considered whether the agreement was negotiated in good faith and whether it provided for a proper process for the resolution of future disputes. Additionally, the court assessed whether the agreement adequately balanced the interests of the employer and the employees.

After reviewing the submissions from both parties and the evidence presented, the court found that the proposed enterprise agreement did not fully comply with the statutory requirements. The court identified several deficiencies in the agreement, particularly regarding the provision of adequate leave entitlements and the process for resolving disputes. The court concluded that the agreement did not adequately protect the employees' interests and did not provide a fair and effective mechanism for dispute resolution. As a result, the court refused to approve the agreement in its current form. The matter was remitted back to the parties for further negotiation and amendment of the agreement to address the identified deficiencies.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established