Australian Botanical Products Pty Limited Summary

[2022] FWCA 3099

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Australian Botanical Products Pty Limited

(AG2022/3517)

Ixom Operations Pty Ltd (Australian Botanical Products) and United Workers Union Enterprise Agreement 2022

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 7 SEPTEMBER 2022

Application for approval of the Ixom Operations Pty Ltd (Australian Botanical Products) and United Workers Union Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Ixom Operations Pty Ltd (Australian Botanical Products) and United Workers Union Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Botanical Products Pty Limited. The Agreement is a single enterprise agreement.

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.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that clause 37.2 of the of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.1 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.

The United 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.

The Agreement is approved and in accordance with s.54, will operate from 14 September 2022. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves Australian Botanical Products Pty Limited and the United Workers Union, who sought approval of the Ixom Operations Pty Ltd (Australian Botanical Products) and United Workers Union Enterprise Agreement 2022. The application was made before the Fair Work Commission, which has jurisdiction to approve or reject enterprise agreements under the Fair Work Act 2009. The legal issues before the Commission were whether the agreement complied with the statutory requirements and if it was in the best interests of the employees.

The Fair Work Commission examined the agreement's provisions to ensure it met the formal requirements under section 231 of the Fair Work Act, including whether it was in writing, provided for a good faith bargaining process, and contained prescribed terms. The Commission also considered whether the agreement complied with the "better off overall test" under section 234 of the Act, which required that employees be no worse off financially and have at least the same conditions as under their previous agreements or the applicable award.

In assessing the agreement, the Fair Work Commission found that it met all formal requirements and contained provisions that were fair and reasonable. The Commission concluded that the agreement was in the best interests of the employees as it provided for fair and equitable terms and conditions of employment. It noted that the agreement included provisions for wages, hours of work, leave, and other employment conditions that were at least as good as, if not better than, the employees' previous agreements or the relevant award. The Commission was satisfied that the agreement met the better off overall test and approved it.

The Fair Work Commission approved the Ixom Operations Pty Ltd (Australian Botanical Products) and United Workers Union Enterprise Agreement 2022. The decision ensures that the employees of Australian Botanical Products Pty Limited will benefit from the agreed terms and conditions of employment, which are fair and reasonable. The approval of the agreement will provide certainty and stability in the workplace, promoting harmonious industrial relations between the employer and the employees.

Australian Botanical Products Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established