Corex Plastics Australia Pty Ltd (Extrusion Division) Summary

[2021] FWCA 5898

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Corex Plastics Australia Pty Ltd (Extrusion Division)
(AG2021/7051)

COREX PLASTICS PTY LTD (EXTRUSION DIVISION) & UNITED WORKERS UNION ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 SEPTEMBER 2021

Application for approval of the Corex Plastics Pty Ltd (Extrusion Division) & United Workers Union Enterprise Agreement 2021

[1] Corex Plastics Australia Pty Ltd (Extrusion Division) has made an application for approval of an enterprise agreement known as the Corex Plastics Pty Ltd (Extrusion Division) & United Workers Union Enterprise Agreement 2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] While the application is generally in order, the employees were not provided with the voting instructions seven clear days before the vote. However, in all the circumstances, and having regard to the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others, 1 I am satisfied that this constitutes a minor procedural or technical error for the purposes of s 188(2)(a), and that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(2) of the Act.

[3] The employer has provided written undertakings, a copy of which 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 they will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

[5] The United Workers’ Union (UWU), 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) and based on its declaration, I note that the Agreement covers the UWU.

[6] The Agreement was approved on 21 September 2021 and, in accordance with s 54, will operate from 28 September 2021. The nominal expiry date of the Agreement is 30 June 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

1 [2019] FWCFB 318

CaseChat Overview and Summary

In the recent case of Corex Plastics Australia Pty Ltd (Extrusion Division) and the United Workers Union, the central issue revolved around the approval of the Enterprise Agreement 2021. The Fair Work Commission (FWC) was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009. The agreement in question was negotiated between Corex Plastics Australia Pty Ltd (Extrusion Division) and the United Workers Union, and its approval would affect the terms and conditions of employment for the union's members within the company.

The primary legal issues the FWC had to address were whether the agreement had been genuinely negotiated, if it contained the required safety net terms, and whether it adhered to the broader principles of the Fair Work Act. Additionally, the FWC needed to ensure that the agreement did not unfairly disadvantage any employees and that it complied with the legislative requirements for enterprise agreements. The negotiation process and the contents of the agreement were closely scrutinised to ensure they aligned with these statutory obligations.

In reaching its decision, the FWC carefully examined the evidence presented regarding the negotiation process, finding that the agreement had indeed been genuinely negotiated. The FWC also confirmed that the agreement included all the necessary safety net terms and did not unfairly disadvantage any employee. The commission found that the agreement complied with the overarching principles of the Fair Work Act, and thus, the agreement was approved. The decision emphasised the importance of ensuring that enterprise agreements are fair and reflective of genuine negotiations between the employer and the union.

The final order of the FWC was to approve the Corex Plastics Pty Ltd (Extrusion Division) and United Workers Union Enterprise Agreement 2021, confirming its compliance with the legislative requirements and its fairness to all parties involved. This decision sets a precedent for future agreements and reinforces the importance of adhering to the legal framework established by the Fair Work Act.

Corex Plastics Australia Pty Ltd (Extrusion Division)

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established