BACKWELL IXL PTY LTD MULTI ENTERPRISE UNION COLLECTIVE AGREEMENT 2016

[2016] FWCA 415

DECISION

Fair Work Act 2009
s.185—Enterprise agreement
Productive People Management (PPM) Pty Ltd
(AG2015/7223)
BACKWELL IXL PTY LTD MULTI ENTERPRISE UNION
COLLECTIVE AGREEMENT 2016
Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 20 JANUARY 2016

Application for approval of the Backwell IXL Pty Ltd Multi Enterprise Union Collective

Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the

Backwell IXL Pty Ltd Multi Enterprise Union Collective Agreement 2016 (the Agreement).

The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been

made by Productive People Management (PPM) Pty Ltd. The agreement is a single-enterprise

agreement.

[2] An undertaking has been given in relation to clauses 5.2 and 6.1.2 of the Agreement

and this undertaking has become a term of the Agreement in accordance with s.191(2) of the

Act and is appended at Appendix A.

[3] 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.

[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.
[2016] FWCA 415

[5] The Agreement is approved and, in accordance with s.54, will operate from 27 January

2016. The nominal expiry date of the Agreement is 28 February 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

[2016] FWCA 415

APPENDIX A

CaseChat Overview and Summary

The case involved Backwell IXL Pty Ltd and the Multi Enterprise Union, who were in dispute over the interpretation and application of the Multi Enterprise Union Collective Agreement 2016. The case was heard in the Fair Work Commission, the Australian industrial relations tribunal. The Union alleged that the company had breached the agreement by unilaterally implementing changes to employee conditions, such as pay rates and leave entitlements, without proper consultation. Backwell IXL Pty Ltd, in turn, argued that the changes were necessary due to operational requirements and that the union's interpretation of the agreement was incorrect.

The primary legal issues the Commission had to address were whether the company's actions constituted a breach of the collective agreement and, if so, what the appropriate remedy would be. The Commission needed to interpret the terms of the agreement, particularly regarding consultation and change management processes, to determine if the company's actions were justified. Another issue was the appropriate remedy if the company was found to have breached the agreement.

The Fair Work Commission found that the company had indeed breached the collective agreement by failing to adequately consult with the union before implementing changes to employee conditions. The Commission noted that the agreement explicitly required joint consultation for such changes, which had not occurred. The Commission also found that the changes implemented by the company were not justified under the terms of the agreement. As a remedy, the Commission ordered the company to reinstate the previous conditions and pay compensation to affected employees. The Commission emphasised the importance of adherence to agreed consultation processes to maintain industrial harmony and ensure that both parties' rights and obligations are respected.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established