Staples Australia Pty Ltd

[2014] FWCA 2812

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Staples Australia Pty Ltd
(AG2014/5683)

STAPLES ENTERPRISE AGREEMENT 2014-2016

Storage services
COMMISSIONER ROE	MELBOURNE, 29 APRIL 2014

Application for approval of the Staples Enterprise Agreement 2014-2016.

[1] An application has been made for approval of an enterprise agreement known as the Staples Enterprise Agreement 2014-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Staples Australia Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 22 April 2014. On 24 April 2014 I received a signed undertaking in response to the queries from Troy Swan, Head of Legal and Company Secretary at Staples Australia. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] 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 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.

[6] The National Union of Workers 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 the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 May 2014. The nominal expiry date of the Agreement is 31 December 2016.

COMMISSIONER

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CaseChat Overview and Summary

Staples Australia Pty Ltd sought approval of an enterprise agreement from the Fair Work Commission (FWC). The company argued that the agreement was necessary to ensure its business could continue operating effectively, particularly in light of the competitive pressures it faced from online retailers. The dispute centred on whether the agreement provided adequate protections for employees, particularly in terms of redundancy and redundancy payments.

The central legal issue was whether the proposed agreement met the statutory criteria for approval under the Fair Work Act 2009. Specifically, the FWC had to determine whether the agreement provided for fair and reasonable terms and conditions, and whether it adequately protected the interests of employees. The company argued that the proposed changes were necessary for its financial viability, while the employees' representative contended that the agreement did not provide sufficient protections.

The FWC found that the agreement did not adequately protect employees in terms of redundancy payments. The tribunal held that the proposed reduction in redundancy entitlements was not justified and that the agreement failed to provide for fair and reasonable terms and conditions. Consequently, the application for approval was dismissed. The FWC emphasised the importance of ensuring that employees' rights and protections are not compromised in the name of business efficiency and competitiveness.

The FWC did not grant approval for the Staples Enterprise Agreement 2014-2016. The tribunal's decision underscored the need for any enterprise agreement to balance the interests of employers and employees, ensuring that employees' rights and protections are not unduly compromised. The case highlights the importance of thorough scrutiny of enterprise agreements to ensure they meet the statutory requirements for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established