DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BASF Australia Ltd
(AG2017/6077)

BASF AUSTRALIA LTD (SEVEN HILLS) AWU ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	WODONGA, 16 JANUARY 2018

Application for approval of the BASF Australia Ltd (Seven Hills) AWU Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the BASF Australia Ltd (Seven Hills) AWU Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BASF Australia Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] 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.

[4] 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.

[5] The Agreement lodged contained an error at clause 51.2. On 15 January 2018, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act removing clause 51.2. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[6] 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.
[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 January 2018. The nominal expiry date of the Agreement is 31 December 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

BASF Australia Limited sought approval of an enterprise agreement with the Australian Workers Union. The Fair Work Commission was the forum for this application. The agreement, negotiated between the parties, aimed to regulate the terms and conditions of employment for BASF's employees in Seven Hills. The primary legal issues revolved around whether the agreement complied with the provisions of the Fair Work Act 2009, including its adherence to the "better off overall test" and other statutory requirements.

The Commission examined the agreement to determine if it provided employees with benefits that were at least as good as those provided by the relevant award or previous enterprise agreement. It also considered whether the agreement met the statutory requirements for approval, such as the absence of provisions that would have an adverse effect on employees' job security. Furthermore, the Commission evaluated the processes followed in negotiating the agreement to ensure they were fair and appropriate.

The Commission found that the agreement satisfied the better off overall test, as employees would benefit from the terms negotiated, including wage increases and other improvements. It also concluded that the agreement complied with all statutory requirements and that the negotiation process was fair. As a result, the Commission approved the BASF Australia Limited (Seven Hills) AWU Enterprise Agreement 2018. The approval took effect from the date specified in the agreement, and the terms of the agreement became binding on BASF and the union members.

BASF Australia Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established