Construction, Forestry, Mining and Energy Union

[2013] FWCA 2080

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2013/5689)

HAZREM PTY LTD ANGLESEA SHUTDOWN AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 5 APRIL 2013

Application for approval of the Hazrem Pty Ltd Anglesea Shutdown Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Hazrem Pty Ltd Anglesea Shutdown Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made Construction, Forestry, Mining and Energy Union (CFMEU). The agreement is a greenfields agreement.

[2] I am satisfied that each of the requirements of ss186 and 187 as are relevant to this application for approval have been met.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) has alerted the Commission to an error in the Agreement relating to one of the wage rates. The C11 rate as it appears in clause 7 does not equate to 97.5% of the C10 rate. Therefore, pursuant to s.586 of the Act, the C11 rate is corrected to read $1330.03.

[4] I am satisfied that the AMWU and the CFMEU, the employee organisations to be covered by the agreement, are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 12 April 2013. The nominal expiry date of the Agreement is 30 September 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) sought approval of the Hazrem Pty Ltd Anglesea Shutdown Agreement 2013 from the Fair Work Commission. The agreement related to the termination of employment of workers at Hazrem Pty Ltd's Anglesea facility, following the company's decision to cease operations at that site. The union argued that the agreement was necessary to ensure a fair and orderly shutdown process, protecting the rights and entitlements of the affected employees.

The legal issues before the Commission included whether the agreement was a "shutdown agreement" within the meaning of section 178 of the Fair Work Act 2009, and if it provided appropriate protections and entitlements for the employees during the shutdown process. The Commission also needed to determine whether the agreement met the requirements of procedural fairness and whether it was in the best interests of the employees.

The Commission found that the Hazrem Pty Ltd Anglesea Shutdown Agreement 2013 was a valid shutdown agreement under the Fair Work Act. It concluded that the agreement provided appropriate protections and entitlements for the employees, and that it was procedurally fair and in their best interests. The Commission took into account the union's role in negotiating the agreement and the interests of the employees during the shutdown process. It also considered the need for an orderly and fair process to manage the termination of employment at the Anglesea facility.

The Fair Work Commission approved the Hazrem Pty Ltd Anglesea Shutdown Agreement 2013. This decision provided certainty and protection for the employees affected by the shutdown and ensured that their rights and entitlements were upheld during the transition process. The approval also facilitated an orderly and efficient closure of the Anglesea facility.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established