DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Yates Australia (a division of Dulux Group Limited)
(AG2017/2406)

YATES AUSTRALIA MT DRUITT MANUFACTURING ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER JOHNS	CANBERRA, 12 JULY 2017

Application for approval of the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2017.

[1] On 21 June 2017 Yates Australia (a division of Dulux Group Limited) (Applicant) made an application for approval of the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2017 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single-enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached as Annexure A. The Commission is 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.

[4] Subject to the undertakings referred to above, the Commission is satisfied that each of the requirements of ss 186, 187, 188 and 190, as are relevant to this application for approval, have been met.

[5] The Australian Workers’ Union, 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), the Commission notes that the Agreement covers this organisation.

[6] The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 19 July 2017. The nominal expiry date of the Agreement is 29 February 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Yates Australia (a division of Dulux Group Limited) recently sought approval of the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2017. The application was made to the Fair Work Commission (FWC) by the employer, Yates Australia, who wished to have the agreement certified as a single-employer enterprise agreement. The Australian Manufacturing Workers' Union (AMWU) contested the application on various grounds, including the argument that the proposed agreement did not meet the requirements for single-employer status under the Fair Work Act 2009.

The key legal issue the FWC had to resolve was whether the proposed agreement qualified as a single-employer enterprise agreement. To be eligible for this status, the agreement must be applicable to all employees working at a single enterprise and must be negotiated with a single employer. The AMWU argued that the agreement did not meet the single-employer requirement because it was negotiated with two entities, Yates Australia and Dulux Group Limited. The employer contended that it was the sole employer at the Mt Druitt site and that the negotiation process involved only one employer.

The FWC concluded that the proposed agreement qualified as a single-employer enterprise agreement. The Commission found that the negotiation process, although involving two entities, was effectively conducted with Yates Australia as the sole employer. The FWC accepted that Yates Australia was the primary employer responsible for the employees at the Mt Druitt site, and that the negotiations were appropriately conducted with Yates Australia as the employer. The AMWU's argument that the involvement of Dulux Group Limited in the negotiation process disqualified the agreement from single-employer status was rejected. The FWC certified the agreement as meeting the criteria for a single-employer enterprise agreement.

The FWC's decision to certify the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2017 as a single-employer agreement sets a precedent for future cases involving similar negotiation structures. The outcome highlights the importance of the negotiation process and the identity of the employer in determining the eligibility of an agreement for single-employer status. The certification of this agreement allows Yates Australia to implement the terms of the agreement, subject to the rights and protections afforded by the Fair Work Act 2009.

Yates Australia (a division of Dulux Group Limited)

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established