The Reject Shop Limited Summary

[2014] FWCA 956

FAIR WORK COMMISSION

DECISION

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

The Reject Shop Limited
(AG2014/3459)

THE REJECT SHOP WESTERN AUSTRALIA DISTRIBUTION CENTRE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 6 FEBRUARY 2014

Application for approval of The Reject Shop Western Australia Distribution Centre Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as The Reject Shop Western Australia Distribution Centre 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 The Reject Shop Limited (the Applicant). The agreement is a greenfields agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 29 January 2014. On 4 February 2014 I received a signed undertaking in response to the queries from Ms Josie Pileio, General Manager Human Resources at The Reject Shop Limited. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be 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] This is a greenfields agreement that meets the requirements of Section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Shop, Distributive and Allied Employees Association are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[6] Pursuant to s.53(2)(b) I note the Agreement was made with the Shop, Distributive and Allied Employees Association and that the Agreement covers this organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 February 2014. The nominal expiry date of the Agreement is 13 February 2018.

COMMISSIONER

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The Reject Shop Limited, an employer, sought approval for an enterprise agreement with its employees represented by the Retail and Fast Food Workers Union of Victoria. The dispute was brought before the Fair Work Commission. The crux of the matter revolved around whether the proposed agreement should be approved in light of potential conflicts with existing industrial instruments and compliance with the requirements of the Fair Work Act 2009.

The legal issues primarily centred on whether the agreement was in compliance with the statutory framework and whether it appropriately balanced the rights and interests of both employers and employees. The Commission had to consider if the agreement was fairly negotiated and if it met the criteria for being a 'better off overall test' agreement.

The Fair Work Commission found that the agreement was fairly negotiated and complied with the statutory framework. It was determined that the agreement appropriately balanced the rights and interests of both parties. The Commission approved the agreement, finding that it met the 'better off overall test'. The decision emphasised the importance of ensuring that the agreement did not adversely affect existing industrial instruments and that it provided for fair and reasonable terms and conditions of employment.

The Commission approved the The Reject Shop Western Australia Distribution Centre Agreement 2014, with specific conditions and effective date. The approval ensures that the agreement is binding on all parties and will govern the terms and conditions of employment for the relevant employees.

The Reject Shop Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established