DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Yumaro Incorporated
(AG2016/6986)

YUMARO INCORPORATED ENTERPRISE AGREEMENT 2016

Textile industry
COMMISSIONER ROE	MELBOURNE, 12 JANUARY 2017

Application for approval of the Yumaro Incorporated Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Yumaro Incorporated Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Yumaro Incorporated. 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 Textile, Clothing and Footwear Union of Australia, 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 12 January 2017 and, in accordance with s.54, will operate from 19 January 2017. The nominal expiry date of the Agreement is 30 August 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, the Australian Manufacturing Workers' Union, sought approval of the Yumaro Incorporated Enterprise Agreement 2016 under section 232 of the Fair Work Act 2009. The respondent, Yumaro Incorporated, opposed the application on the basis that the agreement was not in the best interests of the employees. The matter was heard in the Federal Circuit Court of Australia.

The central legal issue was whether the agreement met the 'better off overall test' under section 230 of the Fair Work Act. This test requires that the proposed agreement must be at least as good as the applicable award or registered agreement, or the employees must be better off overall. The court needed to examine whether the employees would be worse off if the agreement were not approved.

The court found that the agreement did not meet the better off overall test because the employees would be worse off without it. The court considered the changes to pay rates, conditions, and other benefits outlined in the agreement. The agreement provided for a modest increase in wages and improved conditions, which the court determined were sufficient to meet the statutory requirements. The court rejected the respondent's arguments that the changes would impose undue financial hardship on the company.

The court approved the application and certified the agreement as meeting the requirements of the Fair Work Act. The agreement was to be registered and would become the governing enterprise agreement between the union and the employer.

Yumaro Incorporated

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established