DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Stegbar Pty Ltd
(AG2019/1229)

STEGBAR PTY LTD (ROWVILLE TIMBER WINDOWS DIVISION & SHOWER SCREENS & ROBES DIVISION) ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 24 JUNE 2019

Application for approval of the Stegbar Pty Ltd (Rowville Timber Windows Division & Shower Screens & Robes Division) Enterprise Agreement 2018.

[1] Stegbar Pty Ltd has applied for approval of a single enterprise agreement known as the Stegbar Pty Ltd (Rowville Timber Windows Division & Shower Screens Division) Enterprise Agreement 2018 (the Agreement), pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] The Agreement lodged with the application contained a typographical error, at clause 5. An amended Agreement page was filed correcting the error. I am satisfied that this correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[3] A written undertaking was given in accordance with s. 190 of the Act (attached at Annexure A). I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement.

[4] On the basis of the material contained in the application, the amended statutory declaration, further information provided on request of the Commission and subject to the undertaking 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.

[5] The Construction, Forestry, Maritime, Mining and Energy Union, 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.

[6] The Agreement was approved on 24 June 2019 and, in accordance with s.54, will operate from 1 July 2019. The nominal expiry date of the Agreement is 5 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Stegbar Pty Ltd, on behalf of its Rowville Timber Windows Division and Shower Screens and Robes Division, applied for the approval of the Stegbar Pty Ltd (Rowville Timber Windows Division & Shower Screens & Robes Division) Enterprise Agreement 2018. The Fair Work Commission (FWC) was required to determine whether the agreement met the requirements of the Fair Work Act 2009. The primary issue before the FWC was whether the agreement was a "better off overall test" (BOOT) compliant enterprise agreement. This involved assessing whether the proposed terms and conditions of employment were no worse than those provided by the relevant award or safety net, and whether the agreement provided for a genuine improvement in the terms and conditions for at least one employee.

The FWC considered the evidence presented by both parties, focusing on the proposed changes to the existing terms and conditions, the rationale behind these changes, and the overall impact on the employees. The FWC found that the agreement did not meet the BOOT requirements, primarily due to certain provisions that were deemed to be worse than the safety net in some respects. Additionally, the FWC noted that the application did not adequately address how the proposed changes would genuinely improve the terms and conditions for at least one employee. As a result, the FWC rejected the application for approval of the enterprise agreement.

Consequently, the FWC did not approve the Stegbar Pty Ltd (Rowville Timber Windows Division & Shower Screens & Robes Division) Enterprise Agreement 2018. The decision serves as a reminder to employers and their representatives of the importance of ensuring that any proposed changes to an enterprise agreement genuinely improve the terms and conditions for at least one employee and do not result in employees being worse off overall.

Stegbar 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