The Full Bench of Fair Work Australia
("FWA") handed down a significant
decision on Friday, 26 February 2010, reversing a previous decision
by Commissioner Smith on 21 January 2010. The decision relates to
the requirements of dispute resolution clauses in enterprise
agreements.
Background
The Fair Work Act ("FW Act") requires enterprise
agreements to include a term that relates to the settlement of
disputes (about any matters arising under the agreement or in
relation to the National Employment Standards).
Woolworths Ltd submitted an agreement for approval to FWA with
the support of the Shop Distributive and Allied Employees
Association. The agreement contained a clause relating to dispute
resolution that restricted access to arbitration by FWA to
situations where both parties agree to that arbitration.