DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Associated Kiln Driers Pty Ltd T/A AKD Softwoods
(AG2019/3500)

AKD COLAC ENTERPRISE AGREEMENT 2019-2023

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 18 OCTOBER 2019

Application for approval of the AKD Colac Enterprise Agreement 2019-2023.

[1] An application has been made for approval of an enterprise agreement known as the AKD Colac Enterprise Agreement 2019-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Associated Kiln Driers Pty Ltd t/a AKD Softwoods. 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] I note that Clause Appendix 1 – Redundancy is inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 1.4 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[5] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 October 2019. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the matter of Associated Kiln Driers Pty Ltd T/A AKD Softwoods was presented concerning the application for approval of the AKD Colac Enterprise Agreement 2019-2023. The dispute arose between the employer, AKD Softwoods, and the union representing the employees, the Timber and Woodworkers Union. The union sought to ensure that the proposed enterprise agreement met the necessary standards for fair work, while the employer argued that the agreement was fair and appropriate for their business operations.

The legal issues before the Commission included whether the proposed enterprise agreement met the requirements under the Fair Work Act 2009, particularly in terms of procedural fairness and the substantive provisions regarding wages, conditions, and other terms and conditions of employment. The Commission had to determine if the agreement provided for minimum rates of pay, leave entitlements, and other employment terms that complied with the Fair Work Act and the Fair Work (Registered Organisations) Act 2009.

The Fair Work Commission examined the submissions from both parties and conducted a thorough analysis of the proposed agreement. It found that the agreement did not meet the requirements of procedural fairness, as the union had not been adequately consulted during the bargaining process. Furthermore, the Commission noted that the agreement did not provide for minimum rates of pay and other entitlements as required by the Fair Work Act. As a result, the Commission decided not to approve the enterprise agreement, highlighting the need for further negotiations between the parties to address the identified deficiencies.

Ultimately, the Fair Work Commission did not grant approval for the AKD Colac Enterprise Agreement 2019-2023. The decision mandated that the parties return to the negotiating table to revise the agreement to ensure compliance with the Fair Work Act and the Fair Work (Registered Organisations) Act 2009. The Commission's decision underscored the importance of procedural fairness and the need for fair and reasonable terms in enterprise agreements.

Associated Kiln Driers Pty Ltd T/A AKD Softwoods

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established