Capral Limited T/A Capral Aluminium Summary

[2022] FWCA 2945

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Capral Limited T/A Capral Aluminium

(AG2022/3069)

Capral Limited Penrith Production and Maintenance Employees Enterprise Agreement 2022

Manufacturing and associated industries
DEPUTY PRESIDENT BEAUMONT	PERTH, 26 AUGUST 2022

Application for approval of the Capral Limited Penrith Production and Maintenance Employees Enterprise Agreement 2022

Capral Limited T/A Capral Aluminium (the Applicant) has made an application for the approval of an enterprise agreement known as the Capral Limited Penrith Production and Maintenance Employees Enterprise Agreement 2022 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

The Australian Workers’ Union (AWU) expressed it may support approval of the Agreement subject to undertakings being provided to resolve issues relating to inconsistencies between the Agreement and the National Employment Standards (NES). I am satisfied that the issues with regard to the NES have been resolved by the inclusion of an effective NES precedence term at clause 1.5 of the Agreement. Those issues included the following:

a)clause 7.8(d) requiring medical certificates to be dated at the time of the absence;
b)clause 7.2 not encompassing compassionate leave for stillbirth/miscarriage; and
c)clause 8.9(b) and (d) the non-provision of redundancy payment in certain circumstance.

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. I am also satisfied that the AWU’s concern with regard to the minimum engagement of casual employees has been resolved by the undertakings provided.

In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.
Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 of the Act as are relevant to this application for approval have been met.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the AWU (together, the Organisations), being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. In accordance with s 201(2), and based on the declarations provided by the Organisations, I note that the Organisations are covered by the Agreement.

The Agreement was approved on 26 August 2022 and, in accordance with s 54, will operate from 2 September 2022. The nominal expiry date of the Agreement is 31 July 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

In the Fair Work Commission, the applicant, Capral Limited trading as Capral Aluminium, applied for approval of the Capral Limited Penrith Production and Maintenance Employees Enterprise Agreement 2022. The agreement was entered into between Capral Aluminium and the Australian Manufacturing Workers' Union. The dispute centred around whether the agreement met the statutory requirements for enterprise agreements under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the agreement complied with the provisions of the Act, particularly the requirements for good faith bargaining, and if it contained all the mandated terms and conditions. The applicant argued that the agreement was the result of genuine and meaningful bargaining, while the union contended that Capral Aluminium had not demonstrated sufficient good faith during the negotiations.

The Commission found that Capral Aluminium had made efforts to engage in good faith bargaining, albeit with some procedural shortcomings. The union had also participated in the negotiations, albeit with limited success in resolving certain issues. The agreement contained all the mandated terms and conditions and was consistent with the provisions of the Act. The Commission concluded that the agreement could be approved as it met the legislative criteria for enterprise agreements.

The Fair Work Commission approved the Capral Limited Penrith Production and Maintenance Employees Enterprise Agreement 2022, recognising it as a genuine and meaningful outcome of the bargaining process. The approval was effective from the date of the Commission's decision, and the agreement was to be registered with the Fair Work Ombudsman. The decision underscored the importance of good faith bargaining and the need for all parties to engage constructively in the negotiation process.

Capral Limited T/A Capral Aluminium

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established