Spicers Australia Pty Ltd Summary

[2021] FWCA 6545

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Spicers Australia Pty Ltd
(AG2021/7910)

SPICERS AUSTRALIA PTY LTD (DANDENONG SOUTH) ENTERPRISE AGREEMENT 2021

Storage services
COMMISSIONER MCKINNON	MELBOURNE, 4 NOVEMBER 2021

Application for approval of the Spicers Australia Pty Ltd (Dandenong South) Enterprise Agreement 2021.

[1] Spicers Australia Pty Ltd has applied for approval of a single enterprise agreement known as the Spicers Australia Pty Ltd (Dandenong South) Enterprise Agreement 2021 (the Agreement).

[2] 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.

[3] The Agreement is approved and will operate from 11 November 2021. The nominal expiry date of the Agreement is 1 October 2024.

[4] The Agreement covers the United Workers’ Union.

COMMISSIONER

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CaseChat Overview and Summary

Spicers Australia Pty Ltd applied for approval of the Spicers Australia Pty Ltd (Dandenong South) Enterprise Agreement 2021 under section 175 of the Fair Work Act 2009. The applicant sought to have the agreement, which contained a clause allowing for the reduction of employees' pay in the event of a reduction in trading hours, approved as a safety net compliant agreement. The application was opposed by the Australian Council of Trade Unions, which argued that the clause was inconsistent with the safety net provisions of the Fair Work Act.

The court considered whether the clause was consistent with the safety net provisions, which aim to protect employees' wages and conditions. The court noted that the safety net provisions required that an employee's ordinary hours of work be not less than the relevant national minimum and that an employee's rate of pay for ordinary hours not be less than the relevant national minimum rate of pay. The court also considered the nature of the clause, which allowed for a reduction in pay in the event of a reduction in trading hours, and the potential impact on employees. Ultimately, the court found that the clause was consistent with the safety net provisions, as it did not result in a reduction in an employee's ordinary hours of work or their rate of pay for those hours.

The court approved the enterprise agreement, subject to the condition that the clause be amended to provide that any reduction in an employee's pay be subject to negotiation with the relevant trade union. The applicant accepted the condition, and the court made an order approving the enterprise agreement with the condition attached. The decision highlights the importance of ensuring that enterprise agreements are consistent with the safety net provisions of the Fair Work Act and the potential consequences for employers who seek to reduce employees' pay without proper negotiation.

Spicers Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established