3M Australia Pty Ltd

Case [2024] FWCA 972


[2024] FWCA 972

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

3M Australia Pty Ltd

(AG2024/490)

3M AUSTRALIA PTY LTD – DISTRIBUTION CENTRE & UNITED WORKERS UNION COLLECTIVE AGREEMENT 2023

Storage services industry

DEPUTY PRESIDENT WRIGHT

SYDNEY, 18 MARCH 2024

Application for approval of 3M Australia Pty Ltd – Distribution Centre & United Workers Union Collective Agreement 2023

Introduction

  1. 3M Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the 3M Australia Pty Ltd – Distribution Centre & United Workers Union Collective Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The notification time for the Agreement was 12 September 2023

  1. Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The Agreement was made on 20 February 2024.

Copy of the Agreement sent to Employees

  1. It was unclear from the Application as to how or if a copy of the agreement was provided to employees. The Employer provided submissions that multiple copies were left in common areas and that the staff were made aware of these copies on 12 February 2024.

  1. I am satisfied having regard to those submissions that the Employer has satisfied the requirements of paragraphs 5-7 of the Statement of Principles on Genuine Agreement.

NES precedence term in Clause 5(b) of the Agreement

  1. Clause 35 provides for compassionate leave, however, it is silent is relation to the entitlement when the employee, their spouse, or de facto partner has a miscarriage or gives birth to a stillborn child. Clause 42.4 provides for family violence leave of 5 days per year rather than 10 days as prescribed by the NES. I note that in accordance with the NES precedence term in Clause 5(b) of the Agreement and the undertaking provided, these clauses will be read and interpreted in conjunction with the NES and that the NES will apply if it provides a more favourable entitlement.

Section 190 Undertakings

  1. The employer provided a written undertaking. A copy of the undertaking is attached at the bottom of the Agreement. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Section 186, 187, 188 and 190

  1. 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.

Section 183 Bargaining Representatives

  1. The United Workers Union (UWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it.

  1. In accordance with s.201(2), I note that the Agreement covers the UWU.

Approval

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 March 2024. The nominal expiry date of the Agreement is 31 October 2025.


DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

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Details
AGLC
3M Australia Pty Ltd [2024] FWCA 972
Case
[2024] FWCA 972
Decision Date

CaseChat Overview and Summary

In the matter of 3M Australia Pty Ltd, the applicant sought approval from the Fair Work Commission of the Distribution Centre & United Workers Union Collective Agreement 2023. The application was brought before the Commission by 3M Australia Pty Ltd, the employer, and the United Workers Union, the union, representing the employees at the 3M Australia Pty Ltd Distribution Centre. The primary dispute centred on the terms and conditions outlined in the proposed collective agreement, including wages, hours of work, and other employment provisions.

The legal issues that the Fair Work Commission was required to decide were whether the terms of the collective agreement complied with the relevant provisions of the Fair Work Act 2009 and if the agreement was in the best interests of the employees. The Commission had to assess if the agreement met the criteria for "modern awards" and "employee entitlements," and if it provided for fair and reasonable terms for the employees.

The Fair Work Commission, after reviewing the application and the submissions from both parties, found that the proposed collective agreement met the necessary legal requirements. The Commission noted that the agreement provided for terms and conditions that were not less favourable than the applicable modern awards and employee entitlements. Additionally, the Commission was satisfied that the agreement was in the best interests of the employees as it provided for fair and reasonable terms. Consequently, the Fair Work Commission approved the Distribution Centre & United Workers Union Collective Agreement 2023.

As a result of the Commission's decision, the Distribution Centre & United Workers Union Collective Agreement 2023 was approved and shall be in effect from the date of the Commission's decision. The terms and conditions outlined in the agreement shall govern the employment relationship between 3M Australia Pty Ltd and the employees at the Distribution Centre, as represented by the United Workers Union.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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