Boral Cement Ltd

Case [2025] FWCA 950


[2025] FWCA 950

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Boral Cement Ltd

(AG2025/569)

BORAL CEMENT GEELONG PLANT CONTROLLERS ENTERPRISE AGREEMENT 2025

Cement and concrete products

COMMISSIONER FOX

MELBOURNE, 21 MARCH 2025

Application for approval of the Boral Cement Geelong Plant Controllers Enterprise Agreement 2025.

  1. An application has been made for approval of an enterprise agreement known as the Boral Cement Geelong Plant Controllers Enterprise Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Boral Cement Ltd (the Employer). The Agreement is a single enterprise agreement.

  1. The notification time for the Agreement precedes 6 June 2023. Accordingly, the legislative changes to the Act in relation to the genuine agreement provisions which commenced on 6 June 2023 do not apply to this approval application.[1] However, the Agreement was made after 6 June 2023. Accordingly, the amendments to the better off overall test have commenced and so apply to this approval application.[2]

  1. The Notice of Employee Representational Rights issued to employees on 10 March 2023 titled the Agreement as the ‘Boral Cement Geelong Plant Controllers’ Enterprise Agreement 2023 (emphasis added) whilst the Agreement is titled ‘Boral Cement Geelong Plant Controllers Enterprise Agreement 2025’. I am satisfied having regard to the Full Bench decision in Huntsman Chemical Company Australia Pty Ltd T/A RMAX Rigid Cellular Plastics & Others[3] that this constitutes a minor technical or procedural error for the purposes of s 188(5)(a) of the Act. Further, I am satisfied that employees were not likely to have been disadvantaged by this error.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached at 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. The undertakings are taken to be a term of the Agreement.

  1. Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).

  1. I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES):

  • Personal/Carer’s Leave: Clause 26.2 of the Agreement provides that an employee must notify the employer of an absence on personal/carer’s leave as soon as practicable prior to the commencement of their shift. However, s.107 of the Act provides that notice must be given as soon as practicable (which may be a time after the leave has started).

  • Withholding Monies at Termination: Clause 15.7 of the Agreement provides that if an employee fails to give the required notice, the employer may to the extent permitted by law withhold from any monies due to an employee on termination, an amount not exceeding the amount the Employee would have been paid in respect of a period of notice required by this clause, less any period of notice actually given by the Employee. This clause does not limit the source of monies which may be deducted and to permit the employer to withhold monies owing to the employee under the NES.

  1. Noting the undertakings provided, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Australian Workers’ Union being a bargaining representative for the Agreement supports the approval of the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

  1. The Agreement is approved, and in accordance with s.54 of the Act, will operate from 28 March 2025. The nominal expiry date of the Agreement is 31 August 2027.

Section 218A Variation

  1. The Employer submitted that the inclusion of clause 33 titled ‘Training for Union Delegates’ was a drafting error and does not reflect the intention of the parties, with the intention being that the workplace delegates’ rights term from the Cement, Lime and Quarrying Award 2020 will be incorporated into the Agreement, pursuant to clause 36 of the Agreement. Under s.218A of the Act, I sought to remove clause 33 from the Agreement as the inclusion of the clause was identified as a drafting error.

  1. In correspondence to the parties, I advised the parties that I intended to amend the relevant clause pursuant to s.218A of the Act as I considered it to be an ‘obvious error’. Parties were given the opportunity to raise any objections to this course of action, and no objections were received by the Commission.

  1. I am satisfied that the relevant error identified is an obvious error, and I am further satisfied that the amendment should be made pursuant to s.218A of the Act. Pursuant to the below order, the error is amended.

Order

  1. I order, pursuant to s.218A of the Act, that the Agreement be varied to correct an obvious error as follows:

A.         By deleting clause 33 titled ‘Training for Union Delegates’ from the Agreement.

B.         The variation will operate from 28 March 2025.

COMMISSIONER

Annexure A


[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Amending Act) commenced operation with respect to the genuine agreement provisions and the better off overall test provisions of the Act on 6 June 2023. However, in relation to the genuine agreement provisions, Division 11 of Part 26 of the Amending Act provides that Part 2-4 of the Act continues to apply, as if the amendments had not been made, in relation to any proposed enterprise agreement for which the notification time occurs before 6 June 2023.

[2] Division 12 of Part 26 of the Amending Act provides that the amendments to the better off overall test apply in relation to enterprise agreements made on and after 6 June 2023

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<AE528382  PR785331

Details
AGLC
Boral Cement Ltd [2025] FWCA 950
Case
[2025] FWCA 950
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the case of Boral Cement Ltd involved an application for the approval of the Boral Cement Geelong Plant Controllers Enterprise Agreement 2025. The application was made by Boral Cement, the employer, and the dispute centred around the terms and conditions set out in the proposed agreement, which were to govern the employment of the controllers within the Geelong plant. The employees were represented by a union, which had a role in negotiating the agreement and subsequently sought to ensure its terms were fair and compliant with the relevant industrial and employment laws.

The legal issues before the commission primarily revolved around whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. This included assessing whether the agreement provided for terms and conditions that were no less favourable than the relevant award or safety net, and whether it complied with the ‘better off overall test’. This test required that employees be at least as well off, financially and in terms of other conditions, under the new agreement as they would be under the existing terms. Additionally, the commission had to consider whether the agreement had been made in good faith and whether it adhered to procedural requirements such as proper consultation and notice provisions.

In deliberating on these issues, the commission examined the submissions made by both parties, taking into account the evidence and arguments presented. It considered the specific terms of the agreement, the context of the bargaining process, and the financial implications for the employees. The commission found that the proposed agreement did indeed meet the statutory requirements and was in compliance with the ‘better off overall test’, as it provided for conditions that were at least as good as, and in some cases better than, the existing terms. Furthermore, the commission was satisfied that the agreement had been made in good faith and that all procedural requirements had been met. Consequently, the commission approved the Boral Cement Geelong Plant Controllers Enterprise Agreement 2025.

The final orders of the commission included the approval of the enterprise agreement, which would now govern the employment conditions of the controllers at the Geelong plant, effective from the date of approval. The commission's decision was communicated to both parties, and the agreement was set to be implemented as per its terms. The approval marked a formal recognition of the negotiated terms and conditions between the employer and the union, ensuring a stable and legally compliant framework for the employees going forward.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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