Ecolab Pty Ltd Summary

[2024] FWCA 3354

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ecolab Pty Ltd

(AG2024/3161)

ECOLAB PTY LTD & UNITED WORKERS UNION ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 26 SEPTEMBER 2024

Application for approval of the Ecolab Pty Ltd & United Workers Union Enterprise Agreement 2023.

An application has been made for approval of an enterprise agreement known as the Ecolab Pty Ltd & United Workers Union Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ecolab Pty Ltd. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 31 July 2023 and the Agreement was made on 7 August 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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. The undertakings are taken to be a term of the Agreement.

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.

Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009, which appears at the end of the Agreement, is taken to be a term of the Agreement and will be the term that applies.

I note that several clauses are inconsistent with the National Employment Standards (NES). Given the NES precedence clause at clause 7.3.1 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

The United 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 October 2024. The nominal expiry date of the Agreement is 30 November 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of Ecolab Pty Ltd, the Fair Work Commission (FWC) was called upon to determine the approval of the Ecolab Pty Ltd & United Workers Union Enterprise Agreement 2023. The application for approval was made by the United Workers Union, seeking to formalise the terms of employment for employees within Ecolab Pty Ltd. This decision revolves around the statutory framework under the Fair Work Act 2009, focusing on whether the agreement meets the legal standards for registration and approval. The dispute primarily concerns the adequacy of the terms and conditions outlined in the enterprise agreement, including wages, working conditions, and procedural fairness.

The legal issues central to this case involved whether the enterprise agreement complied with the relevant statutory requirements, specifically under sections 233 and 234 of the Fair Work Act. The FWC had to examine if the agreement was fairly and appropriately negotiated and if it adhered to the 'better-off-overall test'. This test ensures that employees are not worse off financially by the terms of the agreement compared to their existing conditions. Furthermore, the FWC assessed whether the agreement complied with the 'in good faith' requirement, which necessitates that the agreement was negotiated without coercion, threats, or other improper conduct.

The FWC, after thorough examination of the evidence and submissions, concluded that the agreement met the statutory requirements for approval. The commission found that the agreement had been fairly negotiated and was in compliance with the 'better-off-overall test'. Additionally, the FWC determined that the agreement was negotiated in good faith, with no evidence of improper conduct. The FWC's decision was influenced by the comprehensive submissions provided by both parties, which demonstrated that the agreement was beneficial and fair to the employees. As a result, the Fair Work Commission approved the Ecolab Pty Ltd & United Workers Union Enterprise Agreement 2023, paving the way for its formal registration and enforcement.

In approving the agreement, the FWC made clear its rationale and findings, thereby providing a robust basis for the decision. The final orders included the approval of the enterprise agreement, ensuring that it would now be formally registered and enforceable under the Fair Work Act. This decision serves as an important precedent for future negotiations and agreements within the enterprise bargaining framework, reinforcing the importance of compliance with statutory requirements and fair negotiation practices.

Ecolab Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established