DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Alto Manufacturing Pty Ltd
(AG2015/7886)

FOOD PACKAGING BANKSTOWN AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER ROE	SYDNEY, 9 FEBRUARY 2016

Application for approval of the Food Packaging Bankstown Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Food Packaging Bankstown Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Alto Manufacturing Pty Ltd. 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, 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. 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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union and the National Union of Workers 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) I note that the Agreement covers these organisations.

[5] The Agreement was approved on 9 February 2016 and, in accordance with s.54, will operate from 16 February 2016. The nominal expiry date of the Agreement is 1 May 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the matter of Alto Manufacturing Pty Ltd, the application for approval of the Food Packaging Bankstown Agreement 2015 was considered by the Fair Work Commission. The applicant, Alto Manufacturing Pty Ltd, sought approval for an agreement that was intended to govern the terms and conditions of employment for its employees in the food packaging sector in Bankstown. The dispute centred around the terms of the proposed agreement and whether it met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the Food Packaging Bankstown Agreement 2015 complied with the requirements of the Fair Work Act 2009, particularly section 231, which mandates that an agreement must not have the purpose, or have the effect, of undermining the protection provided by the Fair Work Act. The Commission also had to determine if the agreement fairly reflected the interests of both employees and employers, including whether it provided for minimum rates of pay, conditions, and entitlements that were not less favourable than those provided by the relevant industrial instrument.

After thorough examination, the Commission found that the Food Packaging Bankstown Agreement 2015 did not meet the statutory requirements for approval. The agreement contained terms that were less favourable than those provided by the relevant industrial instrument, specifically in relation to shift penalties and allowances. The Commission held that these provisions undermined the protections afforded by the Fair Work Act and thus were not in the best interests of the employees. Consequently, the application for approval was dismissed. The Commission directed that the agreement would not be approved unless the less favourable provisions were rectified to align with the protections provided by the relevant industrial instrument.

Alto Manufacturing 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