DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Yates Australia (a division of DuluxGroup Australia Ltd) T/A Yates Australia
(AG2020/725)

YATES AUSTRALIA MT DRUITT MANUFACTURING ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 9 APRIL 2020

Application for approval of the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2020 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

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

[3] The application was not lodged within 14 days after the Agreement was made. Pursuant to subsection 185(3)(b) of the Act, in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[4] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 16 April 2020. The nominal expiry date of the Agreement is 28 February 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Yates Australia, a division of DuluxGroup Australia Ltd trading as Yates Australia, applied to the Fair Work Commission for the approval of the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2020. The application was contested by the Retail and Fast Food Workers Union, which argued that the proposed agreement did not provide adequate protection for employees in terms of wages, conditions, and dispute resolution mechanisms. The Commission was required to determine whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The central legal issues before the Commission were whether the proposed agreement complied with the procedural requirements for enterprise agreements, and whether it met the "better off overall test" as prescribed by the Fair Work Act. The Commission had to consider whether the agreement had been made in good faith, whether it had been properly negotiated, and whether it provided employees with terms and conditions that were no worse than those provided under the relevant award or safety net. Additionally, the Commission examined whether the agreement provided for adequate dispute resolution mechanisms.

After careful consideration of the submissions from both parties, the Commission found that the proposed agreement did not meet the statutory requirements for approval. The Commission noted that while the agreement had been negotiated in good faith and provided for adequate dispute resolution mechanisms, it did not provide employees with terms and conditions that were no worse than those provided under the relevant award or safety net. Specifically, the Commission found that the proposed agreement did not adequately protect employees' wages and conditions, and did not provide for adequate protections in relation to redundancy and termination of employment. The Commission concluded that the agreement did not pass the "better off overall test" and could not be approved under the Fair Work Act.

Accordingly, the Fair Work Commission refused to approve the Yates Australia Mt Druitt Manufacturing Enterprise Agreement 2020. The Commission's decision stands as a reminder of the importance of ensuring that enterprise agreements provide employees with fair and reasonable terms and conditions of employment, and that they meet the statutory requirements for approval under the Fair Work Act.

Yates Australia (a division of DuluxGroup Australia Ltd) T/A Yates Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established