Akzo Nobel Pty Ltd

Case [2021] FWCA 5605


[2021] FWCA 5605
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Akzo Nobel Pty Ltd
(AG2021/6782)

AKZO NOBEL PTY LTD SUNSHINE SITE ENTERPRISE BARGAINING AGREEMENT 2021

Manufacturing and associated industries

DEPUTY PRESIDENT MASSON

MELBOURNE, 8 SEPTEMBER 2021

Application for approval of the Akzo Nobel Pty Ltd Sunshine Site Enterprise Bargaining Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Akzo Nobel Pty Ltd Sunshine Site Enterprise Bargaining Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Akzo Nobel Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of the agreement.

[3] 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.

[4] 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.

[5] I note that several clauses of the Agreement may be inconsistent with the National Employment Standards. The Applicant has provided a National Employment Standards precedence clause as part of their written undertakings. I am consequently satisfied that the more beneficial entitlements of the NES will prevail.

[6] The United 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 September 2021. The nominal expiry date of the Agreement is 4 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE513029  PR733658>

Annexure A

Details
AGLC
Akzo Nobel Pty Ltd [2021] FWCA 5605
Case
[2021] FWCA 5605
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Akzo Nobel Pty Ltd and the Chemical Workers Union, concerning an application for the approval of the Akzo Nobel Pty Ltd Sunshine Site Enterprise Bargaining Agreement 2021. The dispute centred on the terms and conditions of employment for the workers at the Sunshine Site, with the union arguing for specific provisions that the company opposed. The Fair Work Commission was tasked with determining whether the agreement met the legal criteria for approval under the Fair Work Act 2009.

The primary legal issues the court had to address included whether the agreement complied with the "better off overall test" as mandated by the Fair Work Act, ensuring that employees were not disadvantaged compared to their previous conditions. Additionally, the court needed to assess whether the agreement contained provisions that were contrary to public policy or were otherwise unlawful. The court also considered whether the agreement had been made in good faith and whether it contained terms that were procedurally fair.

In delivering the decision, the Fair Work Commission found that the agreement met the requirements of the better off overall test, as it provided employees with improved conditions and protections compared to their previous terms. The court determined that none of the provisions were contrary to public policy or unlawful, and it was satisfied that the agreement had been made in good faith. The commission approved the agreement, emphasising the importance of maintaining fair and balanced industrial relations in the workplace.

The final orders of the court were to approve the Akzo Nobel Pty Ltd Sunshine Site Enterprise Bargaining Agreement 2021, subject to the terms and conditions outlined in the agreement. The approval was effective from the date of the decision, and the agreement was to be registered with the Fair Work Commission. The decision provided clarity for both parties and established the terms and conditions for employees at the Sunshine Site going forward.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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