DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Glass Group (Holdings) Pty Ltd
(AG2021/6370)

AUSTRALIAN GLASS GROUP (HOLDINGS) PTY LTD ENTERPRISE AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER WILSON	MELBOURNE, 12 AUGUST 2021

Application for approval of the Australian Glass Group (Holdings) Pty Ltd Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Australian Glass Group (Holdings) Pty Ltd Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Glass Group (Holdings) Pty Ltd. 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] The Agreement lodged with the Fair Work Commission contained typographical errors on page 17. On 6 August 2021, the Applicant filed an amended Agreement page rectifying the errors pursuant to s.586 of the Act. I am satisfied that the correction to the Clauses should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[4] 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.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 August 2021. The nominal expiry date of the Agreement is 30 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Australian Glass Group (Holdings) Pty Ltd, sought approval of an enterprise agreement from the Fair Work Commission. The agreement, which was to govern the employment terms of certain employees, was disputed by the respondent, Australian Manufacturing Workers' Union. The disagreement centred around several provisions within the proposed agreement, particularly those concerning pay rates, shift patterns, and the incorporation of a clause that would allow for the bypassing of union representation in certain circumstances. The Fair Work Commission was tasked with determining whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The central legal issues before the Commission were whether the provisions in question complied with the procedural and substantive requirements set forth by the Act. Procedurally, the Commission examined whether the agreement was genuinely negotiated and whether the process adhered to the prescribed timelines and notice requirements. Substantively, the Commission assessed if the agreement provided fair and reasonable terms and conditions of employment, taking into account the public interest and the need for workplace harmony. A particular focus was on the pay rates and shift patterns, as well as the clause that limited union involvement in certain workplace matters.

In its reasoning, the Commission found that while the majority of the agreement appeared to be fairly negotiated and reasonable in terms, the clause limiting union representation was problematic. This clause was deemed to undermine the union's role in advocating for employee interests, which is a fundamental aspect of the industrial relations system in Australia. The Commission emphasised that such a clause could potentially lead to unfair treatment of employees and a reduction in workplace harmony. Despite these concerns, the Commission concluded that the overall provisions of the agreement were fair and reasonable, and it approved the agreement subject to the removal of the clause in question.

The Fair Work Commission approved the Australian Glass Group (Holdings) Pty Ltd Enterprise Agreement 2021 with the condition that the clause limiting union representation be deleted. The Commission directed that the agreement would come into effect on the date of the Commission's decision, provided that the parties made written submissions to the Commission within a specified period to confirm compliance with the condition. The Commission's decision thus ensured that the agreement would proceed into effect while also upholding the integrity of the industrial relations system by preventing the erosion of union rights.

Australian Glass Group (Holdings) 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