DECISION

Fair Work Act 2009
s.185—Enterprise agreement

XFLAM Pty Ltd
(AG2015/4356)

XFLAM MANUFACTURING DANDENONG SOUTH SITE ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 25 AUGUST 2015

Application for approval of the XFLAM Manufacturing Dandenong South Site Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the XFLAM Manufacturing Dandenong South Site 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 XFLAM Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 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.

[3] The Agreement was approved on 25 August 2015 and, in accordance with s.54, will operate from 1 September 2015. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

XFLAM Pty Ltd was the applicant before the Fair Work Commission, seeking approval of the XFLAM Manufacturing Dandenong South Site Enterprise Agreement 2015. The applicant sought an approval to implement changes to the employment terms and conditions of its employees. The Australian Manufacturing Workers' Union was the respondent, objecting to the proposed changes.

The central legal issue before the Fair Work Commission was whether the proposed changes to the enterprise agreement met the requirements for approval under the Fair Work Act 2009. The respondent argued that the changes did not meet the criteria for "better off overall or at least as well off" and that certain changes were inconsistent with the national employment standards. The applicant contended that the changes were necessary for the business to remain competitive and were in the best interests of the employees.

The Fair Work Commission held that the proposed changes to the enterprise agreement did not meet the "better off overall or at least as well off" test. The Commission found that the changes would result in some employees being worse off, particularly in terms of their entitlements and conditions. The Commission also found that certain changes were inconsistent with the national employment standards, including provisions relating to maximum weekly hours and penalty rates. Consequently, the Fair Work Commission did not approve the proposed changes to the enterprise agreement.

The Fair Work Commission ordered that the XFLAM Manufacturing Dandenong South Site Enterprise Agreement 2015 not be approved. The Commission directed the parties to continue negotiations in good faith to reach an agreement that met the requirements for approval under the Fair Work Act 2009. The Commission also directed that any changes to the agreement must be in the best interests of the employees and meet the "better off overall or at least as well off" test.

XFLAM 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