DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BlueScope Steel Limited T/A Lysaght
(AG2018/2214)

LYSAGHT EMU PLAINS WORKPLACE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 25 SEPTEMBER 2018

Application for approval of the Lysaght Emu Plains Workplace Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Lysaght Emu Plains Workplace 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 BlueScope Steel Limited T/A Lysaght. 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.

[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] 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 2 October 2018. The nominal expiry date of the Agreement is 12 May 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Fair Work Commission (FWC) was asked to consider BlueScope Steel Limited's application for approval of the Lysaght Emu Plains Workplace Agreement 2018. The agreement was submitted for approval under the Fair Work Act 2009, which mandates that certain types of workplace agreements must be approved by the FWC. The applicant argued that the agreement was a "simple agreement" within the meaning of the Act, and thus eligible for approval without a vote of employees. The dispute arose because the applicant sought to implement changes to employee entitlements, which some employees believed were not adequately addressed in the proposed agreement.

The legal issues before the FWC included whether the agreement was a "simple agreement" and whether the changes proposed were consistent with the requirements of the Act. The applicant contended that the agreement was a simple agreement because it did not alter the terms of employment in a fundamental way, while the objectors argued that the changes to employee entitlements were significant and required a more rigorous approval process. The FWC had to determine whether the agreement met the criteria for a simple agreement and whether the changes proposed were consistent with the overarching principles of the Fair Work Act.

In its decision, the FWC found that the Lysaght Emu Plains Workplace Agreement 2018 did not meet the criteria for a simple agreement. The FWC considered that the proposed changes to employee entitlements were significant and fundamentally altered the terms of employment, which meant that the agreement could not be approved as a simple agreement. The FWC concluded that the changes proposed were not in line with the principles of the Act, which require that employees be given a reasonable opportunity to vote on changes that affect their terms and conditions of employment. Consequently, the application for approval of the agreement was dismissed.

The FWC's final orders were that the Lysaght Emu Plains Workplace Agreement 2018 was not approved. The FWC directed that the applicant must ensure that any changes to employee entitlements be subject to a proper process of consultation and, if necessary, a vote of employees. This decision underscores the importance of ensuring that workplace agreements are properly considered and that employees have an opportunity to participate in decisions that affect their terms and conditions of employment.

BlueScope Steel Limited T/A Lysaght

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established