DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Trico Products Pty Ltd
(AG2017/963)

TRICO PRODUCTS PTY LTD ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 5 APRIL 2017

Application for approval of the Trico Products Pty Ltd Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Trico Products Pty Ltd Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Trico Products 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 5 April 2017 and, in accordance with s.54, will operate from 12 April 2017. The nominal expiry date of the Agreement is 31 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Trico Products Pty Ltd applied for approval of the Trico Products Pty Ltd Enterprise Agreement 2017. The application was opposed by the Australian Manufacturing Workers Union, which raised concerns about certain provisions within the agreement, particularly those concerning redundancies and terminations. The Commission was tasked with determining whether the agreement met the necessary standards for approval under the Fair Work Act 2009.

The primary legal issues centred around whether the provisions of the agreement were compliant with the requirements of the Fair Work Act, including whether they provided for fair and reasonable terms and conditions of employment. The Commission examined the redundancy and termination clauses to assess if they met the criteria for procedural fairness and if they provided adequate protections for employees. It also considered whether the agreement met the ‘better off overall test’, which requires that the terms and conditions of employment under the agreement be no worse than those under the applicable award or safety net.

The Commission found that while the majority of the agreement was in compliance with the Fair Work Act, the redundancy and termination provisions did not sufficiently protect employees from unjust terminations. The Commission concluded that these clauses did not adequately provide for procedural fairness and did not meet the better off overall test. Consequently, the application for approval was not granted. The Fair Work Commission ordered that the agreement be returned to the parties for amendment of the contested provisions to ensure they comply with the Fair Work Act. The Commission emphasised the importance of protecting employees' rights and ensuring that any enterprise agreement provides fair and reasonable terms and conditions of employment.

Trico Products 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