DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Allnex Resins Australia Pty Ltd T/A Allnex
(AG2020/405)

ALLNEX - SPRINGVALE - SITE ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 17 MARCH 2020

Application for approval of the Allnex - Springvale - Site Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Allnex - Springvale - Site Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by LLNEX Resins Australia Pty Ltd t/a Allnex. 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.

[3] 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.

[4] I observe that clause 34 of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 14 of the Agreement, I am satisfied that the beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] 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.

[6] The Agreement was approved on 17 March 2020 and, in accordance with s.54, will operate from 24 March 2020. The nominal expiry date of the Agreement is 31 October 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

Allnex Resins Australia Pty Ltd, trading as Allnex, applied to the Fair Work Commission for approval of the Allnex - Springvale - Site Enterprise Agreement 2019. The application arose due to the need to update and replace the existing enterprise agreement between Allnex and its employees at the Springvale site. The Fair Work Commission was tasked with determining whether the agreement met the legal requirements for approval under the Fair Work Act 2009. The key legal issues centred on whether the agreement was made in good faith, whether it contained the required minimum terms and conditions, and whether it was appropriately negotiated.

The court considered whether the process of negotiation and agreement formation was conducted fairly and in good faith. It also examined whether the agreement provided for the minimum entitlements set out in the Fair Work Act, including minimum wages and conditions. Additionally, the court assessed if the agreement was certified by a certified employer under the Fair Work Act, which is a prerequisite for approval. In reviewing the application, the Fair Work Commission scrutinised the evidence provided by both parties regarding the negotiation process and the contents of the agreement. The Commission found that the negotiation process was conducted in good faith and that the agreement contained all the required minimum terms and conditions.

The Fair Work Commission approved the Allnex - Springvale - Site Enterprise Agreement 2019, finding it to be compliant with the Fair Work Act. The court noted that the agreement was certified by a certified employer and that it provided for the minimum entitlements required by law. The Commission was satisfied that the agreement was made in good faith and that it met all the statutory requirements for approval. Consequently, the application for approval was successful, and the enterprise agreement was certified, effective from the date of the Commission's decision.

Allnex Resins Australia Pty Ltd T/A Allnex

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established