Tom Stoddart Pty Ltd T/A Stoddart Manufacturing

[2023] FWCA 2039

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Tom Stoddart Pty Ltd T/A Stoddart Manufacturing

(AG2023/2106)

TOM STODDART PTY LTD ENTERPRISE AGREEMENT 2023-2024

Manufacturing and associated industries
DEPUTY PRESIDENT WRIGHT	SYDNEY, 4 JULY 2023

Application for approval of the Tom Stoddart Pty Ltd Enterprise Agreement 2023-2024

Introduction

Tom Stoddart Pty Ltd T/A Stoddart Manufacturing (the Employer) has made an application for approval of an enterprise agreement known as the Tom Stoddart Pty Ltd Enterprise Agreement 2023-2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on or after 6 June 2023.

Notification of time, place and method of vote

The notification of time, place and method of vote for employees who were not in the workplace occurred by email on 15 June 2023. Voting for the Agreement commenced on 22 June 2023. This was only 6 clear days prior to the commencement of voting, rather than 7 clear days as required by s.180(3) of the Act. The Employer provided submissions that this matter constituted a minor procedural error.

I am satisfied having regard to those submissions and the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others,[1] that this matter constituted a minor procedural error for the purposes of s.188(2)(a) of the Act, and that the employees covered by the Agreement were not likely to have been disadvantaged by the errors.

Section 186, 187, 188 and 190

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.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 July 2023. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT

[1] [2019] FWCFB 318.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Tom Stoddart Pty Ltd T/A Stoddart Manufacturing sought approval of an enterprise agreement for the period 2023-2024 from the Fair Work Commission. The agreement was intended to cover employees who were members of the Australian Manufacturing Workers' Union. The application was made on the basis that the agreement had been negotiated in good faith, contained no illegal terms, and provided for the prescribed minimum entitlements to be paid to employees. The dispute arose as the applicant sought to confirm the terms of the agreement as being fair and reasonable, in accordance with the Fair Work Act 2009.

The primary legal issue before the Commission was whether the terms of the enterprise agreement met the statutory requirements for approval under the Fair Work Act. This involved assessing whether the agreement had been negotiated in good faith, was free from illegal terms, and provided for minimum entitlements as prescribed by the Act. The Commission also considered whether the terms of the agreement were fair and reasonable, taking into account the economic circumstances of the parties, the nature of the business, and the bargaining power of the parties.

In determining the application, the Commission examined the evidence and submissions provided by the parties. It found that the agreement had been negotiated in good faith and did not contain any illegal terms. The Commission also considered the economic context of the agreement and the bargaining positions of the parties. Ultimately, the Commission was satisfied that the terms of the agreement were fair and reasonable. The agreement provided for minimum entitlements as prescribed by the Act and was within the bounds of what could be considered a fair and reasonable agreement in the circumstances.

Accordingly, the Fair Work Commission approved the Tom Stoddart Pty Ltd Enterprise Agreement 2023-2024. The Commission made orders confirming the approval of the agreement and directed that it be registered with the Fair Work Commission. The agreement is now legally binding on the parties and will govern the employment conditions of the employees covered by the agreement for the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established