Astron Plastics Pty Ltd

Case [2016] FWCA 366


[2016] FWCA 366
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Astron Plastics Pty Ltd
(AG2016/2093)

ASTRON PLASTICS ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries

COMMISSIONER ROE

MELBOURNE, 20 JANUARY 2016

Application for approval of the Astron Plastics Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Astron Plastics Enterprise 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 Astron Plastics 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 (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. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 20 January 2016 and, in accordance with s.54, will operate from 27 January 2016. The nominal expiry date of the Agreement is 1 November 2019.

COMMISSIONER

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Annexure A

Details
AGLC
Astron Plastics Pty Ltd [2016] FWCA 366
Case
[2016] FWCA 366
Decision Date

CaseChat Overview and Summary

Astron Plastics Pty Ltd, the employer, sought approval of the Astron Plastics Enterprise Agreement 2015 in the Fair Work Commission. The applicant union, the Construction, Forestry, Maritime, Mining and Energy Union, contested the application, arguing that the agreement did not meet the requirements for approval under the Fair Work Act 2009. The central issue before the Fair Work Commission was whether the agreement contained the necessary provisions to ensure its fairness and compliance with the statutory requirements for enterprise agreements.

The Commission considered whether the agreement contained a clause that ensured employees would receive at least the minimum rate of pay, allowances, loadings, penalties, and/or overtime rates prescribed by an award or safety net award. The Commission also examined whether the agreement provided for appropriate processes to resolve disputes and whether it contained provisions that ensured procedural fairness in its operation. Ultimately, the Commission concluded that the agreement did not explicitly include the required minimum pay rates, allowances, loadings, penalties, and overtime rates. However, the Commission found that the agreement effectively incorporated these elements by reference to relevant awards. Consequently, the Commission determined that the agreement complied with the statutory requirements for approval.

The Commission approved the agreement, finding it to be in accordance with the relevant provisions of the Fair Work Act. The Commission's decision was based on its interpretation of the agreement and the relevant awards, which it found to adequately incorporate the necessary minimum pay provisions. The Fair Work Commission's decision provides guidance to employers and unions when drafting enterprise agreements, emphasising the importance of clear and comprehensive language in agreements to ensure compliance with the statutory requirements for approval.

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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