Chromaflo Technologies Australia Pty Ltd

[2023] FWCA 1201

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Chromaflo Technologies Australia Pty Ltd

(AG2023/1005)

CHROMAFLO AUSTRALIA ENTERPRISE AGREEMENT 2023 - 2027

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 27 APRIL 2023

Application for approval of the Chromaflo Australia Enterprise Agreement 2023 - 2027

An application has been made for approval of an enterprise agreement known as the Chromaflo Australia Enterprise Agreement 2023 - 2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Applicant. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 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.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 4.2 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.

Pursuant to s 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The United Workers’ Union (UWU), being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it seeks to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 27 April 2023 and, in accordance with s 54, will operate from 4 May 2023. The nominal expiry date of the Agreement is 28 February 2027.

COMMISSIONER

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CaseChat Overview and Summary

The application was brought before the Fair Work Commission by Chromaflo Technologies Australia Pty Ltd, seeking approval for the Chromaflo Australia Enterprise Agreement 2023-2027. The agreement was negotiated between the company and its employees and proposed to cover a range of conditions including wages, hours of work, and other employment terms. The dispute centred on whether the agreement met the legal standards required for approval under the Fair Work Act 2009. Specifically, the court had to determine if the agreement complied with the provisions for good faith bargaining, if it provided for minimum entitlements as set out in the Fair Work Act, and if it was made in a manner that was free from any form of coercion or undue influence.

The key legal issues involved in the case included verifying that the agreement was indeed the product of genuine negotiations, ensuring that it met the minimum standards for employee entitlements, and confirming that the agreement was not entered into under any duress or unfair conditions. The court had to carefully scrutinise the process by which the agreement was formed to ensure it adhered to the principles of fair and genuine negotiation, as well as to confirm that it did not disadvantage employees in any way.

In delivering its decision, the Fair Work Commission found that the agreement was the result of genuine negotiations conducted in good faith and that it met the required minimum standards for employee entitlements. The court was satisfied that the process was free from any form of coercion or undue influence, and that the agreement was made in a manner consistent with the principles of the Fair Work Act. Consequently, the Commission approved the Chromaflo Australia Enterprise Agreement 2023-2027, recognising it as a fair and reasonable agreement that met all statutory requirements for approval.

The final order of the Fair Work Commission was to approve the Chromaflo Australia Enterprise Agreement 2023-2027, allowing it to come into effect as a legally binding document between the company and its employees. The Commission's approval signified that the agreement was compliant with all necessary legal standards and was suitable for implementation in the workplace.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established