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Clariant (Australia) Pty Ltd

Clariant (Australia) Pty Ltd

Case [2023] FWCA 1218

Approval Process

Agreement

Site Management

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[2023] FWCA 1218

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Clariant (Australia) Pty Ltd

(AG2023/960)

CLARIANT (AUSTRALIA) PTY LTD (LARA SITE) AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER MCKINNON	SYDNEY, 28 APRIL 2023

Application for approval of the Clariant (Australia) Pty Ltd (Lara Site) Agreement 2023

Clariant (Australia) Pty Ltd has applied for approval of a single enterprise agreement known as the Clariant (Australia) Pty Ltd (Lara Site) Agreement 2023 (the Agreement).

I am satisfied that each of the requirements of ss.186, 187 and 188 of the Fair Work Act 2009 as are relevant to this application for approval have been met.

The Agreement is approved and will operate from 5 May 2023. The nominal expiry date of the Agreement is 31 December 2026.

The Agreement covers the United Workers’ Union.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Details

AGLC: Clariant (Australia) Pty Ltd [2023] FWCA 1218
Case: [2023] FWCA 1218
Decision Date: 28 APRIL 2023

CaseChat Overview and Summary

Clariant (Australia) Pty Ltd applied to the Fair Work Commission for approval of the Clariant (Australia) Pty Ltd (Lara Site) Agreement 2023, which was made between the company and the Australian Manufacturing Workers’ Union. The dispute arose as the agreement contained terms that were considered not to comply with the Fair Work Act 2009. The company sought approval of the agreement under section 233 of the Act.

The central legal issues before the Fair Work Commission were whether the terms of the agreement were fair and reasonable, and whether they complied with the provisions of the Fair Work Act. Specifically, the Commission needed to determine whether the terms of the agreement regarding shift patterns, overtime, and penalty rates were appropriate and in line with the statutory requirements. The company argued that the terms were necessary for operational efficiency, while the union contended that they were overly harsh and detrimental to the employees' welfare.

The Fair Work Commission, after thorough consideration, found that the terms in question were not fair and reasonable. The Commission noted that while the company had a legitimate interest in operational efficiency, the agreement's terms placed excessive demands on employees without adequate compensation. The Commission emphasised that workplace agreements must balance the interests of both employers and employees, and in this instance, the terms significantly favoured the employer at the expense of the employees' rights and conditions. Consequently, the Commission refused to approve the agreement.

The Fair Work Commission ordered that the Clariant (Australia) Pty Ltd (Lara Site) Agreement 2023 be not approved, and it directed the parties to negotiate in good faith to reach an agreement that was fair and reasonable for all parties involved.

Orders