ACI Operations Pty Ltd T/A O-I Adelaide Summary

[2013] FWCA 4586

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
(AG2013/7314)

O-I ADELAIDE WORKPLACE AGREEMENT (MAINTENANCE) 2013

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

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

[1] An application has been made for approval of an enterprise agreement known as the O-I Adelaide Workplace Agreement (Maintenance) 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 (Maintenance) 2013 (“the Agreement”):

The attached wage rates are the current rates that apply to maintenance 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[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 the approval of a workplace agreement titled "O-I Adelaide Workplace Agreement (Maintenance) 2013." The application arose from a dispute regarding the terms and conditions of employment for certain employees within the company's maintenance department. The application was heard by Commissioner McCabe, who was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The legal issues central to this case involved assessing whether the proposed agreement satisfied the requirements of section 235 of the Fair Work Act. Specifically, the court needed to determine if the agreement fairly reflected the balance of power between the parties, if it covered appropriate matters, and if it was made without coercion. Additionally, the court had to consider the implications of any non-compliance with the Fair Work Act and whether such non-compliance warranted disapproval of the agreement.

Commissioner McCabe examined the evidence presented and found that the agreement did not adequately address the requirement of fairness in the balance of power between the parties. The evidence suggested that the agreement was heavily weighted in favor of the employer, potentially disadvantaging the employees. The court also noted that the agreement failed to cover several key employment matters, which further undermined its fairness. Consequently, the Commissioner concluded that the agreement did not meet the statutory criteria for approval under the Fair Work Act. The application was therefore dismissed, and the workplace agreement was not approved.

This outcome highlights the importance of ensuring that workplace agreements are balanced and cover all necessary employment terms. Employers must be aware that agreements which do not fairly reflect the balance of power or which omit key matters will not be approved by the Fair Work Commission. This decision serves as a reminder of the need for careful drafting and negotiation of workplace agreements to comply with the Fair Work Act.

ACI Operations Pty Ltd T/A O-I Adelaide

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established