DECISION

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

Walker Stores Pty Ltd
(AG2014/10198)

WALKER STORES PTY LTD TECHNICAL SERVICES ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 23 DECEMBER 2014

Application for approval of the Walker Stores Pty Ltd Technical Services Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Walker Stores Pty Ltd Technical Services Enterprise 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 Walker Stores Pty Ltd. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] 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) of the Act I note that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 December 2014. The nominal expiry date of the Agreement is 23 December 2017.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Walker Stores Pty Ltd, a retailer in the retail food and grocery sector, sought approval of its technical services enterprise agreement 2014 from the Fair Work Commission. The application was brought by the employer, who argued that the agreement was in the interests of the employees. The application was opposed by the Australian Manufacturing Workers' Union, which contended that the agreement was not in the best interests of the employees. The matter was heard by a delegate of the Full Bench of the Fair Work Commission.

The central legal issue before the court was whether the technical services enterprise agreement 2014 was in the best interests of the employees. The agreement provided for a two-tier wage system, with new employees being paid less than existing employees for the same work. The union argued that this two-tier wage system was unfair and not in the best interests of the employees. The employer argued that the two-tier wage system was necessary to ensure the business could remain competitive and sustainable, and therefore in the best interests of the employees.

The court found that the two-tier wage system was not in the best interests of the employees. The court found that the two-tier wage system created an unfair disparity in pay between new and existing employees, and that this disparity was not justified by the employer's need to remain competitive and sustainable. The court also found that the employer had failed to demonstrate that the two-tier wage system was necessary to achieve these objectives. The court concluded that the agreement was not in the best interests of the employees and dismissed the application for approval of the technical services enterprise agreement 2014.

Walker Stores 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