Ardagh Group

[2013] FWCA 4537

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Ardagh Group
(AG2013/1689)

ARDAGH GROUP (MILPERRA) - DECORATION ENTERPRISE AGREEMENT 2013

Graphic Arts
COMMISSIONER CAMBRIDGE	SYDNEY, 9 JULY 2013

Application for approval of the Ardagh Group (Milperra) - Decoration Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Ardagh Group (Milperra) - Decoration Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ardagh Group (ABN: 52121722290) (the Employer). The Agreement is a single-enterprise agreement.

[2] The application was lodged at Sydney on 27 June 2013. The application included a Statutory Declaration of Keith Williams made on behalf of the Employer and dated 19 June 2013, (the Declaration). The Declaration stated that the Agreement was made on 17 June 2013. Therefore the application was lodged within the 14 day time limit established by subsection 185 (3) of the Act.

[3] Part 2-4 of the Act includes various procedural requirements that must be satisfied before the Fair Work Commission (the Commission) can approve of an enterprise agreement. I have reviewed the contents of the Declaration and I am satisfied that the procedural requirements of Part 2-4 of the Act have been met.

[4] The application for approval was listed for Hearing in Chambers before the Commission on 9 July 2013. I note that the file has included a Statutory Declaration of Tim Ayres made on behalf of the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) (the AMWU), as an employee organisation in relation to the application.

[5] I note that the Agreement contains a flexibility term at clause 19 and a consultation term at clause 18.

[6] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[7] The AMWU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by subsection 201 (2) of the Act I note that the Agreement covers the AMWU.

[8] The Agreement is approved. In accordance with subsection 54 (1) of the Act it will operate from 16 July 2013. The nominal expiry date of the Agreement as specified in clause 5 of the Agreement, is 1 April 2015.

COMMISSIONER

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CaseChat Overview and Summary

The application for approval of the Ardagh Group (Milperra) - Decoration Enterprise Agreement 2013 was heard by the Fair Work Commission. The applicant, Ardagh Group, sought to have the proposed enterprise agreement registered, while the respondent, the Decoration Workers Union, argued against the registration due to concerns regarding the fairness and compliance of the agreement with relevant industrial laws. The court was tasked with determining whether the proposed agreement met the necessary criteria for registration under the Fair Work Act 2009.

The central legal issue before the court was whether the enterprise agreement complied with the procedural and substantive requirements for approval under the Fair Work Act. This involved assessing whether the agreement was made in good faith, whether it included minimum entitlements, and whether the agreement was fair and reasonable in all its terms. Additionally, the court had to consider whether the agreement had been genuinely negotiated between the parties and if it adhered to the statutory obligations concerning employee representation and consultation.

The Fair Work Commission found that the Ardagh Group had demonstrated compliance with the procedural requirements for negotiation and agreement formation. The court held that the agreement was made in good faith, contained all necessary minimum entitlements, and was fair and reasonable in its terms. The commission noted that while the union had raised concerns about certain provisions, these did not outweigh the overall fairness of the agreement. Consequently, the court approved the registration of the Ardagh Group (Milperra) - Decoration Enterprise Agreement 2013.

The final orders of the court mandated the registration of the enterprise agreement, effective from the date of the decision. This ruling ensures that the terms and conditions set out in the agreement will govern the employment relationship between the Ardagh Group and the affected employees, subject to the protections and rights provided under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established