Capral Limited T/A Capral Aluminium Summary

[2025] FWCA 270

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Capral Limited T/A Capral Aluminium

(AG2024/5042)

CAPRAL LIMITED CANNING VALE PRODUCTION AND MAINTENANCE EMPLOYEES ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT O’KEEFFE	PERTH, 28 JANUARY 2025

Application for approval of the Capral Limited Canning Vale Production and Maintenance Employees Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Capral Limited Canning Vale Production and Maintenance Employees Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Capral Limited T/A Capral Aluminium (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 29 July 2024 and the Agreement was made on 15 December 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT.

The Applicant has provided written undertakings (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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

There was a small typographical error picked up by the Applicant after the Agreement had been submitted for approval. This error resulted in an incorrect date appearing in Appendix A. I am satisfied that this was a genuine error and pursuant to s.586 I have allowed the error to be corrected.

The Australian Workers’ Union (AWU) lodged a Form F18 statutory declaration giving 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 the Agreement covers the AWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 February 2025. The nominal expiry date of the Agreement is 30 December 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the case of Capral Limited T/A Capral Aluminium, the Fair Work Commission was tasked with considering an application for the approval of the Capral Limited Canning Vale Production and Maintenance Employees Enterprise Agreement 2024. The applicants were the Australian Manufacturing Workers' Union and the Metal Trades Industry Association of Australia, representing the employees and employers respectively. The dispute centred around the terms and conditions of employment, including wages, hours of work, and other conditions of employment for production and maintenance employees at Capral's Canning Vale facility. The Commission was required to determine whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the enterprise agreement complied with the procedural and substantive fairness tests prescribed by the Fair Work Act. The procedural fairness test required the Commission to be satisfied that the agreement was made without any improper conduct or coercion. The substantive fairness test required the Commission to assess whether the agreement was fair "having regard to the matters it considers relevant", which included the overall balance of the agreement's terms and conditions, the process by which the agreement was negotiated, and any other matters the Commission deemed relevant.

After hearing submissions from both parties and reviewing the agreement, the Commission found that the agreement met the procedural and substantive fairness tests. The Commission noted the collaborative process by which the agreement was negotiated, the comprehensive nature of the agreement's terms, and the overall balance of the agreement's provisions. The Commission was satisfied that the agreement provided fair and reasonable terms and conditions for the employees, and did not contain any terms that would be considered harsh, unjust, or unreasonable. Accordingly, the Commission approved the enterprise agreement.

The final orders of the Commission were that the Capral Limited Canning Vale Production and Maintenance Employees Enterprise Agreement 2024 be approved as a registered agreement under the Fair Work Act. The agreement is to be registered by the Registrar of the Fair Work Commission, and will come into effect on the date of registration. The Commission noted that the agreement would be subject to the usual processes for variation and termination under the Fair Work Act.

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