Sutton Tools Pty Ltd

Case [2024] FWCA 3035


[2024] FWCA 3035

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sutton Tools Pty Ltd

(AG2024/2753)

SUTTON TOOLS PTY LTD AND UNITED WORKERS UNION (WAREHOUSE) AGREEMENT 2024

Storage services

COMMISSIONER YILMAZ

MELBOURNE, 19 AUGUST 2024

Application for approval of the Sutton Tools Pty Ltd and United Workers Union (Warehouse) Agreement 2024

  1. An application has been made for approval of an enterprise agreement known as the Sutton Tools Pty Ltd and United Workers Union (Warehouse) Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sutton Tools Pty Ltd. The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A 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 ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

  1. I observe that clauses 15.2, 18.1, 39.8.2, 39.11.5, 39.12, 43.1, 45.1, 45.3.6 and 48.1.4(a) of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.4 of the Agreement and the undertaking referred to above, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

  1. Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Storage Services and Wholesale Award 2020[1] is taken to be a term of the Agreement.

  1. The United Workers’ 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.

  1. The Agreement is approved and in accordance with s.54, will operate from 26 August 2024. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Annexure A


[1] MA000084.

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<AE525843 PR778462>

Details
AGLC
Sutton Tools Pty Ltd [2024] FWCA 3035
Case
[2024] FWCA 3035
Decision Date

CaseChat Overview and Summary

Sutton Tools Pty Ltd, a company engaged in the manufacture of tools, filed an application with the Fair Work Commission for the approval of a new enterprise agreement with the United Workers Union (Warehouse). The Union represents the employees of Sutton Tools Pty Ltd. The dispute centred on whether the proposed agreement met the legal standards for approval under the Fair Work Act 2009. The court was tasked with examining the provisions of the agreement to determine if they complied with the statutory requirements, including whether they provided for fair and reasonable terms and conditions of employment.

The key legal issues before the court involved assessing whether the proposed agreement contained all the prescribed minimum terms and conditions mandated by the Fair Work Act 2009. The court also had to consider whether the agreement was negotiated in good faith and if it provided for fair and reasonable terms and conditions for the employees. Additionally, the court examined whether the agreement complied with the provisions of the Act concerning procedural fairness, including the requirement for the agreement to be in writing and for proper bargaining to have taken place.

The court determined that the proposed agreement met all the necessary statutory requirements. It was found to be negotiated in good faith and contained fair and reasonable terms and conditions for the employees. The court was satisfied that the agreement was in writing and that the bargaining process adhered to the procedural fairness provisions of the Act. Consequently, the court approved the Sutton Tools Pty Ltd and United Workers Union (Warehouse) Agreement 2024.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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