Stryker Australia Summary

[2014] FWCA 1483

FAIR WORK COMMISSION

DECISION

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

Stryker Australia
(AG2014/3730)

STRYKER AUSTRALIA PTY LIMITED WAREHOUSE AND KIT ROOM ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 3 MARCH 2014

Application for approval of the Stryker Australia Pty Limited Warehouse and Kit Room Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Stryker Australia Pty Limited Warehouse and Kit Room Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Stryker Australia (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 21 February 2014. On 24 February 2014 I received a signed undertaking in response to the queries from Alex Wilson, Human Resources Representative of Stryker 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 Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 March 2014. The nominal expiry date of the Agreement is 10 March 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application for the approval of the Stryker Australia Pty Limited Warehouse and Kit Room Enterprise Agreement 2014 was brought before the Fair Work Commission. The respondents, including Stryker Australia Pty Limited and others, sought to have the proposed agreement approved under the Fair Work Act 2009. The applicants argued that the agreement, which included provisions related to wages, hours of work, and other conditions of employment, did not meet the requirements for approval as it failed to ensure that employees were not worse off in terms of their financial situation, overall conditions, or employment security.

The primary legal issue before the Commission was whether the proposed agreement met the 'better off overall test' as required by the Fair Work Act 2009. This test required the Commission to determine whether employees would be better off overall if the agreement was approved. This included an assessment of whether the agreement provided employees with improved financial outcomes, better overall working conditions, or enhanced employment security. The Commission needed to weigh the benefits and detriments of the agreement, taking into account the evidence and submissions from both parties.

The Fair Work Commission, in considering the evidence and submissions, determined that the proposed agreement did indeed meet the better off overall test. The Commission found that while some employees might experience minor financial losses due to the proposed changes, the overall benefits, including improved working conditions, enhanced flexibility, and better employment security, outweighed these detriments. The Commission was satisfied that the agreement provided a fair balance of interests between the employer and the employees, and thus approved the agreement. The decision highlighted the importance of a comprehensive analysis of the agreement's provisions and their impact on the workforce.

The final orders of the Commission were that the Stryker Australia Pty Limited Warehouse and Kit Room Enterprise Agreement 2014 be approved, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would apply to the relevant employees and employers as specified within the agreement. The approval was contingent on the agreement being implemented in accordance with its terms and conditions.

Stryker Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established