ACI Operations Pty Ltd T/A O-I Adelaide

[2013] FWCA 4589

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

ACI Operations Pty Ltd T/A O-I Adelaide
(AG2013/7315)

O-I ADELAIDE PLANT WORKPLACE AGREEMENT (GLASSWORKERS) 2013

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 12 JULY 2013

Application for approval of the O-I Adelaide Plant Workplace Agreement (Glassworkers) 2013.

[1] An application has been made for approval of an enterprise agreement known as the O-I Adelaide Plant Workplace Agreement (Glassworkers) 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ACI Operations Pty Ltd T/A O-I Adelaide. The Agreement is a single-enterprise agreement.

[2] The employer has provided an undertaking in the following terms:

“THIS UNDERTAKING is given by ACI Operations Pty Ltd trading as O-I Adelaide with respect to the O-I Adelaide Workplace Agreement (Glassworkers) 2013 (“the Agreement”):

The attached wage rates are the current rates that apply to Production employees at the OI Adelaide plant”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

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

[5] The Australian Workers’ 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 this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 July 2013. The nominal expiry date of the Agreement is 14 February 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, ACI Operations Pty Ltd, trading as O-I Adelaide, applied to the Fair Work Commission for approval of the O-I Adelaide Plant Workplace Agreement (Glassworkers) 2013. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union, acting on behalf of several employees. The dispute centred around whether the proposed workplace agreement complied with the requirements of the Fair Work Act 2009 and the Fair Work Regulations 2009.

The primary legal issues before the Commission were whether the agreement provided adequate protections for employees, particularly in relation to redundancy and the classification of employees. The union argued that the proposed agreement failed to provide sufficient safeguards for employees facing redundancy and that it misclassified certain employees as casual, thereby denying them access to certain benefits and entitlements. The Commission had to determine whether the agreement met the statutory criteria for approval, including whether it provided for the safety net of the National Employment Standards and whether it complied with the procedural requirements for making an enterprise agreement.

In its decision, the Commission found that while the proposed agreement did not provide the strongest possible protections for employees facing redundancy, it did meet the minimum safety net requirements of the National Employment Standards. The Commission also determined that the classification of employees as casual was appropriate based on the evidence presented. As such, the application for approval of the agreement was upheld. The Commission emphasised the importance of ensuring that employees receive adequate protection under workplace agreements, but found that in this case, the agreement met the necessary legislative criteria.

The Fair Work Commission approved the O-I Adelaide Plant Workplace Agreement (Glassworkers) 2013, subject to the parties notifying it of any changes to the agreement that would affect its compliance with the Fair Work Act 2009. The Commission also directed the parties to take steps to ensure that employees were adequately informed about the terms of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established