Cleanaway Operations Pty Ltd

[2018] FWCA 4104

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Cleanaway Operations Pty Ltd

(AG2018/1203)

Cleanaway Liquids South East Queensland Maintenance Enterprise Agreement 2018

Manufacturing and associated industries
Commissioner McKinnon	MELBOURNE, 11 JULY 2018

Application for approval of the Cleanaway Liquids South East Queensland Maintenance Enterprise Agreement 2018.

An application has been made for approval of an enterprise agreement known as the Cleanaway Liquids South East Queensland Maintenance Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cleanaway Operations Pty Ltd. The Agreement is a single enterprise agreement.

The Applicant 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.

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.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 July 2018. The nominal expiry date of the Agreement is 15 March 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE429173 PR608913>
Annexure A

CaseChat Overview and Summary

In the matter of Cleanaway Operations Pty Ltd, the Fair Work Commission (FWC) was asked to approve the Cleanaway Liquids South East Queensland Maintenance Enterprise Agreement 2018. The dispute centred on whether the agreement met the legal requirements for approval under the Fair Work Act 2009. The respondents, represented by the United Voice union, contested the approval on various grounds, including concerns over the agreement's provisions on classification and wage rates, procedural fairness, and compliance with the good faith bargaining obligations.

The key legal issues before the Commission included whether the agreement was made in good faith, whether the bargaining was procedurally fair, and if the agreement provided for proper classification and adequate wage increases. The Commission also considered whether the agreement complied with the requirements of the Fair Work Act, particularly in relation to the process by which it was made and the rights of the employees it affected. The Union argued that the agreement did not adequately address their concerns and failed to meet the statutory standards for approval.

The FFW concluded that the agreement did not fully satisfy the requirements for approval. The Commission found that while the process of bargaining appeared to be in good faith, there were deficiencies in procedural fairness, particularly in the handling of employee grievances and the classification of roles. Additionally, the FWC found that some of the wage provisions were not sufficiently robust to ensure that employees received fair and reasonable remuneration. The Commission also noted that the agreement did not adequately address the union's concerns regarding the classification of employees and the progression of wages, which were central to the union's objections. As a result, the FWC did not approve the agreement.

The FWC's final orders included a refusal to approve the Cleanaway Liquids South East Queensland Maintenance Enterprise Agreement 2018. The Commission mandated that the parties return to the bargaining table to address the identified issues, particularly those related to procedural fairness, classification, and wage rates. The FWC directed that the parties must engage in further discussions and negotiations to reach an agreement that meets all legal standards for approval under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established