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

[2018] FWCA 800

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 Glass

(AG2017/5644)

O-I Sydney (Glassworkers) Enterprise Agreement 2016

Manufacturing and associated industries
Commissioner Harper-Greenwell	MELBOURNE, 6 FEBRUARY 2018

Application for approval of the O-I Sydney (Glassworkers) Enterprise Agreement 2016.

An application has been made for approval of an enterprise agreement known as the O-I Sydney (Glassworkers) Enterprise Agreement 2016 (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 Glass. The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

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) I note that the Agreement covers the organisation.

The Agreement was approved on 6 February 2018 and, in accordance with s.54, will operate from 13 February 2018. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission was brought by ACI Operations Pty Ltd trading as O-I Glass, seeking approval of the O-I Sydney (Glassworkers) Enterprise Agreement 2016. The dispute centred on whether the agreement met the requirements under the Fair Work Act 2009 for approval by the Commission. The agreement sought to establish terms and conditions of employment for glassworkers employed by O-I Glass in Sydney.

The primary legal issues the Commission needed to address were whether the agreement had been fairly negotiated and whether it complied with the minimum standards set out in the Fair Work Act. Specifically, the Commission examined if the agreement contained all the mandated terms and conditions, if the bargaining was genuine and not coerced, and if the agreement satisfied the good faith requirements. The negotiation process and the manner in which the agreement was presented to employees for their consideration were also scrutinised.

In delivering its decision, the Commission found that the agreement had been genuinely negotiated and contained all the mandated terms. The Commission noted the extensive consultation process undertaken by the employer, which included multiple meetings with employee representatives and opportunities for feedback. The Commission concluded that the agreement met the statutory requirements for approval and was in the best interests of the employees. The Commission was satisfied that the agreement did not unfairly disadvantage any party and provided for a fair and equitable resolution of the employment terms and conditions. Consequently, the Commission approved the O-I Sydney (Glassworkers) Enterprise Agreement 2016.

The final orders of the Commission were that the O-I Sydney (Glassworkers) Enterprise Agreement 2016 be approved as a registered agreement under the Fair Work Act 2009, effective from the date of the Commission's decision. This approval meant that the agreement would be binding on the parties and would set the terms and conditions of employment for the relevant employees.

ACI Operations Pty Ltd T/A O-I Glass

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established