ForestOne Australia Pty Ltd T/A ForestOne Australia Pty Ltd

[2022] FWCA 2407

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ForestOne Australia Pty Ltd T/A ForestOne Australia Pty Ltd

(AG2022/2329)

ForestOne Enterprise Agreement 2022

Timber and paper products industry
COMMISSIONER CIRKOVIC	MELBOURNE, 19 JULY 2022

Application for approval of the ForestOne Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the ForestOne Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ForestOne Australia Pty Ltd T/A ForestOne Australia Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.4 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.

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 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 26 July 2022. The nominal expiry date of the Agreement is 18 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

ForestOne Australia Pty Ltd T/A ForestOne Australia Pty Ltd sought approval of the ForestOne Enterprise Agreement 2022. The application was heard in the Fair Work Commission. The application arose from negotiations between ForestOne Australia Pty Ltd and their employees, represented by the Australian Manufacturing Workers' Union. The central dispute was whether the proposed agreement met the criteria for approval under the Fair Work Act 2009, particularly in terms of its compliance with the 'better off overall test' and its procedural fairness.

The court had to determine whether the agreement provided a fair and reasonable outcome for the employees, considering their overall conditions of employment. It also needed to assess if the agreement was negotiated in good faith and if the process adhered to the legal requirements set out in the Fair Work Act. A key issue was whether the employees' interests were genuinely represented during the negotiation process, and if the agreement's terms were transparent and comprehensible.

The Fair Work Commission examined the evidence provided by both parties and considered submissions from the Australian Manufacturing Workers' Union and the employer. The Commission found that the agreement met the better off overall test as it provided employees with a modest increase in wages and improved conditions, outweighing any minor inconveniences. It also determined that the negotiation process was conducted in good faith and that the employees' interests were adequately represented. Consequently, the Commission approved the ForestOne Enterprise Agreement 2022, stating it was fair and reasonable.

The Fair Work Commission ordered the approval of the ForestOne Enterprise Agreement 2022, effective from the date specified in the agreement. The decision was binding on all parties, and the agreement was to be registered with the Fair Work Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established