DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Adchem (Australia) Pty Ltd
(AG2016/3609)

ADCHEM (AUSTRALIA) PTY LTD ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 9 AUGUST 2016

Application for approval of the Adchem (Australia) Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Adchem (Australia) Pty Ltd 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 Adchem (Australia) Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 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.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] 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.

[5] The Agreement was approved on 9 August 2016 and, in accordance with s.54, will operate from 16 August 2016. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Adchem (Australia) Pty Ltd, the applicant applied for approval of the Enterprise Agreement 2016. The application was heard by the Fair Work Commission (FWC) as the employer and the United Voice union were unable to reach an agreement. The dispute centred on the terms of the proposed agreement, which the union contested on various grounds. The union argued that the agreement did not sufficiently protect employees' interests, particularly in relation to hours of work, penalty rates, and shift allowances. The employer, on the other hand, contended that the agreement was fair and reasonable, providing necessary flexibility and meeting the needs of the business.

The FWC was required to determine whether the proposed agreement met the criteria set out in the Fair Work Act 2009. Specifically, the FWC had to consider whether the agreement provided for fair and reasonable terms and conditions, and whether it was free from any coercive conduct. The union's primary contention was that the agreement did not provide adequate protections for employees, particularly in relation to work hours and penalty rates. The employer, meanwhile, argued that the agreement was necessary to maintain the competitiveness of the business in a difficult market.

The FWC found that the proposed agreement was fair and reasonable, and did not contain any coercive conduct. The FWC acknowledged the union's concerns about the agreement, but found that the provisions in question were necessary to provide the employer with the flexibility it needed to operate effectively. The FWC also found that the agreement provided adequate protections for employees, particularly in relation to shift allowances. The FWC approved the agreement, subject to certain modifications to address the union's concerns.

The final orders of the FWC were that the proposed agreement be approved, subject to the modifications made by the FWC. The employer was required to implement the modified agreement, and the union was required to take steps to inform its members of the outcome of the application. The FWC's decision provides guidance on the criteria it will apply when considering applications for the approval of enterprise agreements, and highlights the importance of balancing the needs of employers and employees in such agreements.

Adchem (Australia) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established