DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Trustee for the Entegro Group Unit Trust T/A Entegro Group Pty Ltd
(AG2018/6079)

ENTEGRO GROUP AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 8 APRIL 2019

Application for approval of the Entegro Group and National Union of Workers Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Entegro Group and National Union of Workers Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by The Trustee for the Entegro Group Unit Trust T/A Entegro Group Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The National Union of Workers (NUW) 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 April 2019. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the Trustee for the Entegro Group Unit Trust T/A Entegro Group Pty Ltd sought approval for the Entegro Group and National Union of Workers Enterprise Agreement 2018. The applicant, Entegro, is a company that operates in the waste and recycling industry, while the National Union of Workers is a trade union representing employees in the industry. The dispute centred on whether the enterprise agreement should be approved under the Fair Work Act 2009, given that it contained terms that were not compliant with the "better off overall test" (BOOT) stipulated by the legislation. This test ensures that employees are no worse off financially under the new agreement compared to their previous conditions.

The primary legal issue the Commission needed to address was whether the enterprise agreement met the requirements of the BOOT, particularly in relation to the financial terms and conditions for the employees. The applicant argued that the agreement was fair and reasonable, and that it provided for a safety net of minimum wages and conditions for employees. The union contended that the agreement did not adequately protect employees' rights and conditions, and that it failed the BOOT. The Commission had to determine whether the provisions of the agreement were in compliance with the statutory requirements and whether the agreement would provide a safety net for employees.

In its decision, the Commission found that the enterprise agreement did not meet the BOOT. The Commission noted that several terms in the agreement were below the applicable award rates, and that these terms would result in employees being worse off overall. The Commission also found that the agreement did not provide an adequate safety net for employees, as it contained terms that were below the minimum standards set by the relevant awards. The Commission concluded that the agreement failed to meet the statutory requirements and could not be approved. Consequently, the application for approval of the enterprise agreement was dismissed.

As a result of the decision, the enterprise agreement was not approved, and the parties were required to continue to be bound by the applicable awards. The Commission's decision highlights the importance of ensuring that enterprise agreements meet the statutory requirements and provide a safety net for employees. The decision also underscores the need for careful consideration of the BOOT when negotiating and finalising enterprise agreements.

The Trustee for the Entegro Group Unit Trust T/A Entegro Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established