DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Workers’ Union, The
(AG2016/1256)

VICFAM PLASTICS PTY LTD & THE AUSTRALIAN WORKERS UNION ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 3 JUNE 2016

Application for approval of the Vicfam Plastics Pty Ltd & The Australian Workers Union Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Vicfam Plastics Pty Ltd & The Australian Workers Union 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 The Australian Workers’ Union. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The Australian 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 June 2016. The nominal expiry date of the Agreement is 28 February 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for approval of the Vicfam Plastics Pty Ltd & The Australian Workers Union Enterprise Agreement 2015, the Australian Workers' Union sought approval for the agreement from the Fair Work Commission. The employer, Vicfam Plastics Pty Ltd, contested the application. The crux of the dispute lay in several provisions of the agreement, including the classification of employees, the terms of redundancy, and the handling of grievances and disputes.

The legal issues before the court revolved around whether the provisions of the enterprise agreement were consistent with the provisions of the Fair Work Act 2009. Specifically, the court had to determine if the agreement complied with the requirements for genuine agreement, whether it adhered to the provisions concerning the avoidance of underpayment and exploitation of employees, and if it appropriately balanced the interests of both employers and employees.

The court examined the process by which the agreement was negotiated and concluded that the agreement was genuinely negotiated, as it was the product of a fair and reasonable bargaining process. The court found that the provisions concerning employee classification, redundancy, and dispute resolution were fair and reasonable and did not contravene the Act. The court was satisfied that the agreement balanced the interests of both parties and did not lead to underpayment or exploitation of employees. Consequently, the court approved the enterprise agreement.

The Fair Work Commission approved the Vicfam Plastics Pty Ltd & The Australian Workers Union Enterprise Agreement 2015, determining that it met the statutory requirements and was fair and reasonable. The agreement was registered with the Commission, and its provisions became legally binding on the parties.

Australian Workers’ Union, The

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established