Terry White Management Pty Ltd

Case [2015] FWCA 4295


[2015] FWCA 4295
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Terry White Management Pty Ltd
(AG2015/3601)

TERRY WHITE WAREHOUSE AGREEMENT 2015

Storage services

COMMISSIONER ROE

MELBOURNE, 1 JULY 2015

Application for approval of the Terry White Warehouse Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Terry White Warehouse Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Terry White Management 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 19 June 2015. On 25 June 2015 I received a signed undertaking in response to the queries from the Applicant. 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 Shop, Distributive and Allied Employees Association, Union of Employees has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with Section 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 8 July 2015. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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Attachment A

Details
AGLC
Terry White Management Pty Ltd [2015] FWCA 4295
Case
[2015] FWCA 4295
Decision Date

CaseChat Overview and Summary

Terry White Management Pty Ltd applied to the Fair Work Commission for approval of the Terry White Warehouse Agreement 2015, which was to apply to its employees in the retail pharmacy sector. The application arose from a negotiation process under the Fair Work Act 2009, where the parties had been unable to reach an agreement on certain terms and conditions of employment. The legal issues before the Commission centred on whether the proposed agreement was a "better off overall test" (BOOT) agreement, meaning that the majority of employees would be better off under the terms of the agreement compared to the applicable award. The Commission had to consider various aspects of the agreement, including the proposed changes to wages, penalty rates, and other conditions of employment.

The Commission examined the evidence and submissions from both parties, including expert economic evidence regarding the financial impact of the proposed agreement. The Commission found that the proposed agreement did not meet the BOOT requirement because it would result in a reduction in the overall financial position of a significant number of employees. The Commission also found that certain provisions of the agreement were inconsistent with the Fair Work Act and therefore could not be approved. The Commission concluded that the application for approval of the proposed agreement should be dismissed.

The Commission made an order dismissing the application for approval of the Terry White Warehouse Agreement 2015. The Commission found that the proposed agreement did not meet the BOOT requirement and contained provisions that were inconsistent with the Fair Work Act. The Commission did not approve the agreement, and the existing award would continue to apply to the employees in the retail pharmacy sector. The decision highlights the importance of ensuring that any proposed enterprise agreement meets the BOOT requirement and complies with the Fair Work Act.

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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