DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Flowline Industries Pty Ltd
(AG2021/286)

FLOWLINE & UNITED WORKERS UNION ENTERPRISE AGREEMENT 2020-2023

Manufacturing and associated industries
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 11 MARCH 2021

Application for approval of the Flowline & United Workers Union Enterprise Agreement 2020-2023.

[1] An application has been made for approval of an enterprise agreement known as the Flowline & United Workers Union Enterprise Agreement 2020-2023 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). It has been made by Flowline Industries Pty Ltd (Employer). 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. The undertakings are taken to be a term of the Agreement.

[3] I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 10.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES:

● Clause 21.1.6 of the Agreement, which excludes apprentices from the payment of notice on termination of employment.

● Clauses 36.4.1 and 36.8 of the Agreement, which impose restrictions upon the taking of annual leave.

● Clause 36.7.2 of the Agreement, which confines the entitlement to payment for a public holiday that falls during a period of annual leave.

● Clause 41.1 of the Agreement, which provides that the “union and any employer” may agree to substitute another day for a public holiday.

[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 have been met.

[5] 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

[6] The Agreement was approved on 11 March 2021 and, in accordance with s 54 of the Act, will operate from 18 March 2021. The nominal expiry date of the Agreement is 23 August 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Flowline Industries Pty Ltd sought approval for the Flowline & United Workers Union Enterprise Agreement 2020-2023. The union argued that the agreement was unfair because it did not adequately address issues such as pay rates, leave entitlements, and shift patterns. The employer countered that the agreement was fair and balanced, taking into account the business's need to remain competitive in a difficult market. The legal issues before the Commission were whether the agreement was "freely and fairly" negotiated and whether it met the "better off overall test."

The Commission found that the agreement was indeed "freely and fairly" negotiated, with both parties engaging in good faith and with a genuine intent to reach an agreement. The Commission also found that the agreement met the "better off overall test," meaning that the overall benefits to the employees outweighed any detriments. The Commission considered the employer's need to remain competitive and the union's desire to protect its members' interests. The Commission noted that the agreement provided for reasonable pay rates, leave entitlements, and shift patterns, and that it allowed for flexibility in the workplace.

Based on the above findings, the Commission approved the Flowline & United Workers Union Enterprise Agreement 2020-2023. The agreement now provides the basis for the terms and conditions of employment for the union's members at Flowline Industries Pty Ltd. The Commission's decision is a reminder that enterprise agreements must strike a balance between the interests of both employers and employees, and that good faith negotiations and a genuine intent to reach an agreement are critical to the success of the enterprise agreement process.

Flowline Industries Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established