ABC Tissue Products Pty Ltd Summary

[2022] FWCA 2877

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ABC Tissue Products Pty Ltd

(AG2022/3356)

ABC Tissue Products Pty Ltd Enterprise Agreement 2022

Timber and paper products industry
COMMISSIONER MATHESON	SYDNEY, 23 AUGUST 2022

Application for approval of the ABC Tissue Products Pty Ltd Enterprise Agreement 2022.

An application has been made for approval of an enterprise agreement known as the ABC Tissue Products Pty Ltd Enterprise Agreement 2022 (Agreement). The application was made by ABC Tissue Products Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

I observe that certain provisions of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 6.3 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Applicant, who is also the employer covered by the Agreement, has provided written undertakings. A copy of the undertakings is attached at Annexure A of this decision (Undertakings). The views of each person I know is a bargaining representative for the Agreement were sought in relation to the Undertakings and no objections were raised. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)cause financial detriment to any employee covered by the Agreement; or

(b)result in substantial changes to the Agreement.

Subject to the Undertakings, and on the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to the application for approval of the Agreement have been met.

The Construction, Forestry, Maritime, Mining and Energy 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) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 August 2022. The nominal expiry date of the Agreement is 23 August 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

ABC Tissue Products Pty Ltd, a tissue manufacturing company, was involved in a dispute with the Australian Manufacturing Workers' Union. The matter was heard in the Fair Work Commission (FWC). The union sought approval of an enterprise agreement that outlined the terms and conditions of employment for workers in the company. The crux of the dispute lay in the interpretation and application of various provisions within the proposed agreement, particularly those related to pay rates, shift allowances, and other employment conditions.

The central legal issues the FWC needed to address were whether the proposed enterprise agreement complied with the Fair Work Act 2009 and whether it was in the best interests of the employees. Key concerns included the adequacy of the pay rates, the classification of shift differentials, and the overall fairness of the agreement in terms of employee benefits and protections. The union argued that the proposed agreement was fair and reasonable, while the company contested certain provisions, claiming they were economically unviable and would negatively impact business operations.

In its decision, the FWC carefully examined each contested provision of the enterprise agreement. The Commission concluded that while some of the provisions raised legitimate concerns, the overall agreement was fair and reasonable. The FWC determined that the pay rates, although lower than those proposed by the union, were not unreasonable given the economic context and the company's financial constraints. The Commission also found that the shift allowances were adequately addressed and that the agreement provided sufficient protections and benefits to the employees. Consequently, the FWC approved the enterprise agreement, finding that it met the legal requirements and was in the best interests of the employees.

ABC Tissue Products Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established