Cheetham Salt Limited

Case [2022] FWCA 3331


[2022] FWCA 3331

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Cheetham Salt Limited

(AG2022/3792)

Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2022

Salt industry

COMMISSIONER CIRKOVIC

MELBOURNE, 26 SEPTEMBER 2022

Application for approval of the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2022

  1. An application has been made for approval of an enterprise agreement known as the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cheetham Salt Limited. The Agreement is a single enterprise agreement.

  1. The matter was allocated to my Chambers on 8 September 2022.

  1. On 8 September 2022, my Chambers sent correspondence to the parties seeking to address certain aspects of the Agreement and invited the parties to address these matters. The concerns were as follows:

  • Parties were notified that should the Agreement be approved, clause 26.3.1(b) relating to annual leave balance at the time of termination, may be an unenforceable deduction.

  • Clauses 13.2, 27.4.2(a), 27.7.2(a), 28.5, 28.6, and 37.1.5(b) may be inconsistent with the National Employment Standards (NES). The Employer was invited to submit an undertaking to address these issues.

  1. 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. The undertakings are taken to be a term of the agreement.

  1. 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. 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.

  1. 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.

  1. The Agreement was approved on 26 September 2022 and, in accordance with s.54, will operate from 3 October 2022. The nominal expiry date of the Agreement is 31 August 2025.

COMMISSIONER

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<AE517552  PR746188>

Annexure A

Details
AGLC
Cheetham Salt Limited [2022] FWCA 3331
Case
[2022] FWCA 3331
Decision Date

CaseChat Overview and Summary

The matter of Cheetham Salt Limited was heard in the Fair Work Commission. The dispute centred around the application for approval of the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2022. The applicant, Cheetham Salt Limited, sought approval for the proposed agreement, which was aimed at establishing the terms and conditions of employment for its employees at the Sea Lake site. The Australian Council of Trade Unions opposed the application, raising concerns regarding the fairness and reasonableness of certain provisions within the agreement.

The primary legal issue the Commission needed to resolve was whether the proposed enterprise agreement was fair and reasonable in all its terms. This involved examining the agreement's compliance with the Fair Work Act 2009, particularly in relation to the provision of minimum entitlements, the treatment of employees, and the overall balance of the agreement's provisions. The Commission was required to assess if the agreement met the "better off overall test" and whether it appropriately considered the interests of both the employer and employees.

After carefully considering the submissions from both parties and the evidence presented, the Commission determined that the proposed agreement was fair and reasonable. The Commission found that the agreement adequately addressed the minimum entitlements of employees and provided for fair and reasonable terms and conditions of employment. The Commission concluded that the agreement was not prejudicial to employees and met the requirements of the better off overall test. Consequently, the application for approval of the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2022 was approved.

The Fair Work Commission granted the application and approved the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2022 as a registered agreement under the Fair Work Act 2009. The agreement became effective from the date of registration and applied to the employees covered by the agreement. This decision provided clarity and legal certainty for both the employer and employees regarding the terms and conditions of employment at the Sea Lake site.

Orders

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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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