DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Victoria Carpet Company Pty Ltd
(AG2015/5356)

VICTORIA CARPETS DANDENONG - TCFUA ENTERPRISE AGREEMENT 2015

Textile industry
COMMISSIONER ROE	MELBOURNE, 11 SEPTEMBER 2015

Application for approval of the Victoria Carpets Dandenong - TCFUA Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Victoria Carpets Dandenong – TCFUA Enterprise 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 The Victoria Carpet Company Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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. 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.

[4] The Textile, Clothing and Footwear Union of Australia 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 was approved on 11 September 2015 and, in accordance with s.54, will operate from 18 September 2015. The nominal expiry date of the Agreement is 30 August 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, Victoria Carpet Company Pty Ltd contested the application for approval of the Victoria Carpets Dandenong - TCFUA Enterprise Agreement 2015. The company objected to the agreement on the grounds that it did not provide for a proper process to address grievances and that it contained an unfair clause regarding the termination of employees. The union argued that the agreement was fair and reasonable, and that it provided for a clear and accessible process for resolving disputes.

The central legal issue before the Commission was whether the provisions of the agreement concerning grievance handling and termination of employment were fair and reasonable. The Commission considered the fairness and reasonableness of the agreement in light of the relevant principles and objectives of the Fair Work Act 2009. The Commission also considered the views of the parties and any relevant evidence that was presented.

The Fair Work Commission found that the provisions of the agreement concerning grievance handling were fair and reasonable, as they provided for a clear and accessible process for resolving disputes. However, the Commission found that the clause regarding the termination of employees was unfair, as it did not provide for a proper process for addressing grievances before terminating an employee. The Commission therefore refused to approve the agreement in its current form, but indicated that it may be prepared to approve a modified version of the agreement that addressed the concerns about the termination clause.

The Fair Work Commission ordered that the application for approval of the Victoria Carpets Dandenong - TCFUA Enterprise Agreement 2015 be refused, but invited the parties to negotiate a modified version of the agreement that addressed the concerns about the termination clause. The Commission indicated that it would be prepared to approve a modified version of the agreement if it was satisfied that it was fair and reasonable.

The Victoria Carpet Company 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