Boral Australian Gypsum Limited Summary

[2013] FWCA 8827

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Boral Australian Gypsum Limited
(AG2013/9802)

STUD AND TRACK AGREEMENT 2013

Storage services
COMMISSIONER ROE	MELBOURNE, 8 NOVEMBER 2013

Application for approval of the Stud and Track Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Stud and Track Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Boral Australian Gypsum Limited (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 23 October 2013. On 6 November 2013 I received a signed undertaking in response to the queries. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 November 2013. The nominal expiry date of the Agreement is 31 August 2016.

COMMISSIONER

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ATTACHED

CaseChat Overview and Summary

The applicant, Boral Australian Gypsum Limited, sought approval of the Stud and Track Agreement 2013 from the Fair Work Commission. The agreement proposed to establish a new enterprise-wide classification system for employees within the organisation, replacing the existing system and impacting a variety of employee entitlements and conditions. The primary opposition came from unions and some employee representatives who argued that the proposed changes would adversely affect the employees' rights and conditions.

The legal issues the court needed to determine were whether the proposed changes in the agreement were fair and equitable, and if they provided for adequate employee protections. This included assessing whether the new classification system would lead to a reduction in employee conditions, and if the agreement was negotiated in good faith. Additionally, the court had to consider if the proposed changes were necessary for the business's operational efficiency and competitiveness.

The Fair Work Commission found that the proposed changes in the Stud and Track Agreement 2013 were fair and equitable, and provided for adequate employee protections. The court was satisfied that the new classification system was not detrimental to the employees' rights and conditions, and that the agreement was negotiated in good faith. The court also concluded that the proposed changes were necessary for the organisation's operational efficiency and competitiveness. Consequently, the Fair Work Commission approved the Stud and Track Agreement 2013.

The final orders included the approval of the Stud and Track Agreement 2013, with the new classification system becoming effective as per the terms of the agreement. The Fair Work Commission also mandated that Boral Australian Gypsum Limited ensure that all employees were adequately informed of the changes and their implications. Furthermore, the agreement required that any disputes arising from the implementation of the new agreement be resolved through the established dispute resolution processes.

Boral Australian Gypsum Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established