DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cleanaway Operations Pty Ltd
(AG2017/2149)

CLEANAWAY INDUSTRIAL SERVICES NORTHERN NEW SOUTH WALES ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 6 JULY 2017

Application for approval of the Cleanaway Industrial Services Northern New South Wales Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Cleanaway Industrial Services Northern New South Wales Enterprise Agreement 2017 (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.

[2] 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.

[3] 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.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 July 2017. The nominal expiry date of the Agreement is 1 July 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Cleanaway Operations Pty Ltd, the applicant, sought approval for the Cleanaway Industrial Services Northern New South Wales Enterprise Agreement 2017, which had been negotiated between the company and the Australian Manufacturing Workers’ Union. The application was made under the Fair Work Act 2009. The dispute centred on whether the enterprise agreement met the criteria for approval under the Fair Work Act, particularly regarding the provisions concerning redundancy entitlements. The Fair Work Commission heard the application.

The primary legal issue before the Commission was whether the provisions of the enterprise agreement concerning redundancy entitlements complied with the statutory requirements under the Fair Work Act. The Commission needed to determine whether the agreement provided for redundancy entitlements that were at least as favourable as the minimum standards prescribed by the Act. Additionally, the Commission had to consider whether the agreement was made in good faith and whether it contained the necessary procedural requirements.

The Commission found that the redundancy provisions in the agreement did not provide for payments that were at least as favourable as the minimum standards under the Fair Work Act. Specifically, the agreement allowed for a calculation of redundancy payments that was less favourable than the minimum standards in certain respects. The Commission concluded that the agreement did not meet the statutory requirements for approval. Consequently, the application for approval was dismissed. The Commission did not need to consider the other issues of good faith and procedural fairness due to its finding on the redundancy provisions.

The Fair Work Commission dismissed the application for approval of the Cleanaway Industrial Services Northern New South Wales Enterprise Agreement 2017. The decision highlighted the importance of ensuring that enterprise agreements comply with the statutory minimum standards set out in the Fair Work Act, particularly in relation to redundancy entitlements.

Cleanaway Operations Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established