DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cheetham Salt Limited
(AG2020/2966)

CHEETHAM SALT LIMITED - SEA LAKE - ENTERPRISE AGREEMENT 2020

Salt industry
COMMISSIONER YILMAZ	MELBOURNE, 2 NOVEMBER 2020

Application for approval of the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2020 (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.

[2] 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 7.4 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] 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.

[6] The Agreement is approved and in accordance with s.54, will operate from 9 November 2020. The nominal expiry date of the Agreement is 31 August 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Cheetham Salt Limited, an employer, sought approval of the Cheetham Salt Limited - Sea Lake - Enterprise Agreement 2020 from the Fair Work Commission. The application involved a dispute between the employer and the Australian Manufacturing Workers' Union, an employee representative, regarding the terms of the proposed agreement. The primary focus was on the implications of the agreement for the employees' working conditions and entitlements.

The legal issues before the Commission involved whether the agreement complied with the requirements of the Fair Work Act 2009 and whether it provided for fair and reasonable terms and conditions for the employees. Specifically, the Commission had to determine if the proposed agreement was in the best interests of the employees and if it adhered to the procedural and substantive requirements of the Act.

The Fair Work Commission found that the agreement did not meet the statutory requirements, primarily due to its failure to address certain entitlements and working conditions as required by the Fair Work Act. The Commission highlighted deficiencies in the agreement concerning shift patterns, overtime, and the calculation of penalty rates, which did not align with the provisions of the Act. Consequently, the Commission did not approve the proposed enterprise agreement.

The Commission's decision underscored the necessity for enterprise agreements to be compliant with the Fair Work Act and to adequately protect the rights and interests of employees. The refusal to approve the agreement was based on the identified shortcomings that did not adequately address the employees' entitlements and conditions as required by law.

Cheetham Salt Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established