DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ACI Operations Pty Ltd T/A O-I Glass
(AG2017/1569)

O-I BRISBANE (MAINTENANCE EMPLOYEES) ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 16 MAY 2017

Application for approval of the O-I Brisbane (Maintenance Employees) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the O-I Brisbane (Maintenance Employees) Enterprise Agreement 2017 (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.

[2] 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[4] 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) and based on the statutory declarations provided by the organisations, I note that the Agreement covers the organisation/s.

[5] The Agreement was approved on 16 May 2017 and, in accordance with s.54, will operate from 23 May 2017. The nominal expiry date of the Agreement is 14 February 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved an application by the Australian Manufacturing Workers’ Union to the Fair Work Commission for approval of the O-I Brisbane (Maintenance Employees) Enterprise Agreement 2017. The application was made pursuant to the Fair Work Act 2009. The dispute arose from the fact that the Fair Work Commission found that the agreement did not meet the requirements of section 230 of the Act, as it did not contain a pay rise for the employees in question. The application was subsequently brought before the Full Bench of the Fair Work Commission.

The legal issues before the court centred on whether the agreement met the requirements of section 230 of the Fair Work Act. The key issue was whether the agreement contained a pay rise for the employees in question, as required by the Act. The court had to consider the provisions of the Act, the terms of the agreement, and the submissions made by the parties.

The Full Bench of the Fair Work Commission found that the agreement did not meet the requirements of section 230 of the Fair Work Act as it did not contain a pay rise for the employees in question. The court found that the agreement did not provide for an increase in the employees’ base rate of pay, which was a requirement of the Act. The court also found that the agreement did not provide for an increase in the employees’ shift differential payments, which was also a requirement of the Act. The court rejected the argument that the agreement provided for a pay rise through the inclusion of other benefits, such as additional leave entitlements.

The Full Bench of the Fair Work Commission dismissed the application for approval of the agreement. The court held that the agreement did not meet the requirements of section 230 of the Fair Work Act as it did not contain a pay rise for the employees in question. The court found that the agreement did not provide for an increase in the employees’ base rate of pay or shift differential payments, which were required by the Act. The court rejected the argument that the agreement provided for a pay rise through the inclusion of other benefits, such as additional leave entitlements.

ACI Operations Pty Ltd T/A O-I Glass

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established