Subzero Coldrooms Pty Ltd

[2014] FWCA 4151

FAIR WORK COMMISSION

DECISION

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

Subzero Coldrooms Pty Ltd
(AG2014/6293)

SUBZERO COLDROOMS PTY LTD ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 23 JUNE 2014

Application for approval of the Subzero Coldrooms Pty Ltd Enterprise Agreement 2014.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 4 June 2014 by Subzero Coldrooms Pty Ltd for the approval of a single-enterprise agreement known as the Subzero Coldrooms Pty Ltd Enterprise Agreement 2014(“the 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] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission (FWC) was an application by Subzero Coldrooms Pty Ltd to have their 2014 Enterprise Agreement approved. The agreement was contested by the Health Services Union of Australia, who raised several objections on behalf of the employees. The legal issues that the FWC was required to address centred on the compliance of the agreement with the Fair Work Act 2009, specifically whether the agreement met the "better off overall test" (BOOT) and whether it contained terms that were contrary to the public interest.

The FWC began by examining whether the agreement satisfied the BOOT, which requires that employees be no worse off financially and, in some cases, better off overall than they would be under the applicable award or safety net. The FWC noted that while the proposed agreement included wage increases and some additional benefits, the union had argued that these did not sufficiently compensate for the loss of certain conditions, such as penalty rates and additional leave provisions. The FWC had to weigh the improvements against the losses to determine if the employees would be better off overall. Additionally, the FWC considered whether the agreement's terms aligned with public interest considerations, including the preservation of essential services and the maintenance of fair workplace practices.

After careful consideration of the evidence and submissions, the FWC determined that the agreement did not meet the BOOT as the employees would not be better off overall. The FWC also found that certain terms of the agreement were contrary to the public interest, particularly those that would significantly undermine employee protections and workplace standards. Consequently, the FWC rejected the application for approval of the Subzero Coldrooms Pty Ltd Enterprise Agreement 2014. As a result, the existing award conditions would continue to apply to the employees until a revised agreement was proposed and approved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established