DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Devro Pty Limited
(AG2018/2549)

DEVRO PTY LIMITED OPERATING EMPLOYEES ENTERPRISE AGREEMENT 2018

Food, beverages and tobacco manufacturing industry
COMMISSIONER GREGORY	MELBOURNE, 26 NOVEMBER 2018

Application for approval of the Devro Pty Limited Operating Employees Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Devro Pty Limited Operating Employees 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 Devro Pty Limited. The Agreement is a single enterprise agreement.

[2] The Employer 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 Australasian Meat Industry Employees 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 3 December 2018. The nominal expiry date of the Agreement is 2 February 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Devro Pty Limited, applied for the approval of the Devro Pty Limited Operating Employees Enterprise Agreement 2018. The respondent, the Finance Sector Union of Australia, opposed the application on the basis that the proposed agreement did not meet the requirements of the Fair Work Act 2009, particularly in relation to the enterprise’s bargaining power and the negotiation process.

The central legal issues before the Commission were whether the agreement was genuinely negotiated between the parties and whether it complied with the statutory criteria for approval. The respondent argued that the enterprise had significant bargaining power, which may have led to an unfair negotiation process, and that certain provisions in the agreement were not negotiated in good faith. The applicant maintained that the agreement was the result of genuine and fair negotiations and satisfied all legislative requirements.

The Commission examined the evidence presented by both parties, including the bargaining history, the process of negotiations, and the content of the agreement. The Commission found that the applicant, while having considerable bargaining power, had conducted negotiations in a manner that was consistent with good faith bargaining. It was determined that the agreement had been genuinely negotiated and met the statutory criteria for approval. The Commission emphasised the importance of the bargaining process and the need for compliance with the statutory requirements, but concluded that these had been adequately satisfied in this case.

The Fair Work Commission approved the Devro Pty Limited Operating Employees Enterprise Agreement 2018. The decision highlights the importance of fair and genuine negotiations, even in the context of significant bargaining power, and the need for compliance with the statutory requirements for enterprise agreements.

Devro Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established