Dyno Nobel Asia Pacific Pty Ltd

Case [2021] FWCA 3316


[2021] FWCA 3316
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Dyno Nobel Asia Pacific Pty Ltd
(AG2021/5262)

DYNO NOBEL CENTRAL & SOUTH QUEENSLAND OPERATIONS ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries

DEPUTY PRESIDENT ASBURY

BRISBANE, 9 JUNE 2021

Application for approval of the Dyno Nobel Central & South Queensland Operations Enterprise Agreement 2021.

[1] Dyno Nobel Asia Pacific Pty Ltd (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the Dyno Nobel Central & South Queensland Operations Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] I observe that the following clauses may be inconsistent with the National Employment Standards (NES):

Clause 17.5(b) – Annual Leave;

Clause 18.7 – Carer’s Leave;

Clause 21.5 – Parental Leave Entitlement;

Clause 21.6 – Parental Leave Entitlement;

Clause 22.1 – Public Holidays;

Clause 23.1 – Termination by an employee; and

Clause 27.5 – Calculation of severance payment.

[3] However, I note clause 4.2 of the Agreement provides that where there is an inconsistency between a provision of the Agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency. On this basis, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES. I also note that by virtue of s. 55 of the Act, an enterprise agreement must not exclude the NES or any provisions of the NES and s. 56 provides that a term of an enterprise agreement has no effect to the extent that it contravenes s. 55.

[4] Undertakings were provided by the Applicant in response to concerns the Commission held in relation to the operation of certain clauses and whether the Agreement passes the better off overall test. A copy of the Undertakings is attached as Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[5] The views of each person or organisation the Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings. Pursuant to subsection 190(3) of the Act, I accept the Undertakings. In accordance with s.201(3) of the Act, a copy of the undertakings will be attached to the Agreement and forms part of the Agreement.

[6] I am satisfied, on the basis of information set out in the Form F16 Application for approval of an enterprise agreement, the Form F17 Employer’s declaration in support of an application for approval of the Agreement and responses to requests for further information provided by the Applicant, that each of the requirements of ss. l86, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A), and on the basis of the information contained in the Form F17, I am satisfied that the group of employees covered by the Agreement was fairly chosen.

[7] The Construction, Forestry, Maritime, Mining and Energy Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover that organisation. In accordance with s.201(2) of the Act, and based on the declaration provided by the organisation, I note that the Agreement covers this organisation.

[8] The Agreement is approved in accordance with s.54 of the Act and will operate from 16 June 2021. The nominal expiry date of the Agreement is 9 June 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE511775  PR730579>

Annexure A

Details
AGLC
Dyno Nobel Asia Pacific Pty Ltd [2021] FWCA 3316
Case
[2021] FWCA 3316
Decision Date

CaseChat Overview and Summary

Dyno Nobel Asia Pacific Pty Ltd sought approval of the Dyno Nobel Central & South Queensland Operations Enterprise Agreement 2021 in the Fair Work Commission. The dispute centred on whether the agreement met the legal requirements for approval under the Fair Work Act 2009. The central issue was whether the agreement contained terms that were not genuinely bargained for, as required by the legislation.

The court had to determine if the agreement had been negotiated in good faith and whether it was an enterprise agreement genuinely agreed upon by the employer and the employees. The negotiation process was scrutinized to ascertain if it was free from any coercion or undue influence. Additionally, the court examined whether the terms of the agreement were fair and reasonable in all aspects.

The Fair Work Commission found that the agreement had been negotiated in good faith and was genuinely bargained for. The court held that the terms were fair and reasonable and did not contravene any provisions of the Fair Work Act. Consequently, the court approved the agreement. The decision underscored the importance of ensuring genuine negotiation processes and fair terms in enterprise agreements.

The final orders of the court were to approve the Dyno Nobel Central & South Queensland Operations Enterprise Agreement 2021 as meeting the requirements of the Fair Work Act 2009. The agreement was to be registered and enforceable from the date of the decision.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.