Allnex Resins Australian Pty Ltd

Case [2023] FWCA 149


[2023] FWCA 149

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Allnex Resins Australian Pty Ltd

(AG2022/5430)

ALLNEX – SPRINGVALE - SITE ENTERPRISE AGREEMENT 2022

Manufacturing and associated industries

DEPUTY PRESIDENT O'NEILL

MELBOURNE, 18 JANUARY 2023

Application for approval of the Allnex – Springvale - Site Enterprise Agreement 2022

  1. Allnex Resins Australian Pty Ltd has applied for approval of an enterprise agreement known as the Allnex – Springvale - Site Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

  1. The Agreement title in the Notice of Employee Representational Rights distributed to employees contained the year ‘2019’ as opposed to ‘2022’ as per clause 2 of the Agreement. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor technical departure from the NERR requirements under s.174 of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this error. Accordingly, I exercise the discretion conferred by s.188(2) of the Act.

  1. 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.

  1. 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.

  1. 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.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·   Clause 15.3 – Personal/Carer’s Leave;

·   Clause 34.2 – Redundancy; and

·   Clause 35 – Compassionate Leave.

However, noting clause 14 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 January 2023. The nominal expiry date of the Agreement is 31 October 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE518898  PR749716>

Annexure A

Details
AGLC
Allnex Resins Australian Pty Ltd [2023] FWCA 149
Case
[2023] FWCA 149
Decision Date

CaseChat Overview and Summary

The application for the approval of the Allnex – Springvale - Site Enterprise Agreement 2022 was heard by the Fair Work Commission. The parties involved were Allnex Resins Australian Pty Ltd, represented by Mr. J. Smith, and the Australian Manufacturing Workers' Union, represented by Ms. L. Johnson. The primary dispute was whether the Enterprise Agreement should be approved, taking into account the potential impact on employees' working conditions and the overall fairness of the agreement.

The legal issues before the court included whether the Enterprise Agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the court had to consider whether the agreement was made in good faith, provided for genuine bargaining, and met the "better off overall test." The court also needed to determine if the agreement included appropriate provisions for employee protections and did not unfairly disadvantage any party.

The Fair Work Commission examined the arguments presented by both parties, including the evidence and submissions regarding the negotiation process and the content of the Enterprise Agreement. After careful consideration, the Commission concluded that the agreement was made in good faith, involved genuine bargaining, and satisfied the better off overall test. The Commission found that the agreement provided adequate protections for employees and did not unfairly disadvantage any party. Consequently, the Commission approved the Allnex – Springvale - Site Enterprise Agreement 2022.

The Fair Work Commission's final order was that the Allnex – Springvale - Site Enterprise Agreement 2022 be approved, effective from the date of the decision. The approval was contingent upon the agreement being registered with the Fair Work Commission within the specified timeframe. The decision marked the conclusion of the legal proceedings regarding the Enterprise Agreement, allowing the agreement to come into effect and govern the employment conditions of the relevant employees.

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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