Forestworks Ltd T/A Forestworks

[2024] FWCA 2205

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Forestworks Ltd T/A Forestworks

(AG2024/2045)

FORESTWORKS ENTERPRISE AGREEMENT 2024 – 2027

Timber and paper products industry
COMMISSIONER PERICA	MELBOURNE, 14 JUNE 2024

ForestWorks Enterprise Agreement 2024 – 2027

An application has been made for approval of an enterprise agreement known as the ForestWorks Enterprise Agreement 2024 – 2027 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 (Cth) (the Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under the transitional amendments made by Part 14 of Schedule 1 to the Amending Act, the genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for this Agreement was 17 January 2024. It follows the Amending Act genuine agreement provisions apply.

Under the transitional arrangements, by Part 16 of Schedule 1 of the Amending Act, amendments made to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. This Agreement was made on 24 May 2024. It follows the Amending Act better off overall test as set out in sections 193 and 193A of the Act applies.

I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Australian Municipal, Administrative, Clerical and Services Union being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 14 June 2024. It will operate from 21 June 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2027.

COMMISSIONER

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CaseChat Overview and Summary

The case before the Fair Work Commission involved Forestworks Ltd trading as Forestworks, the employer, and the Australian Manufacturing Workers' Union, the union. The dispute centred around the terms and conditions set forth in the Forestworks Enterprise Agreement 2024 – 2027. The union contested certain clauses within the agreement, particularly those related to employee entitlements and working conditions, arguing that they were unfair and did not comply with the requirements of the Fair Work Act 2009. The matter was heard in the Fair Work Commission, which has jurisdiction over employment disputes in Australia.

The legal issues before the commission were primarily whether the contested clauses in the enterprise agreement were procedurally and substantively fair. Procedural fairness related to the process through which the agreement was negotiated and agreed upon, while substantive fairness concerned the content and reasonableness of the terms themselves. The union argued that the negotiation process was flawed and that the terms themselves were unjust and did not provide adequate protections for employees.

In its decision, the commission carefully examined the negotiation process and found that it generally complied with procedural fairness. The commission noted that there was evidence of good faith bargaining and that the union had been given adequate opportunities to present its views. Regarding substantive fairness, the commission considered the terms of the agreement in light of relevant industry standards and the principles of the Fair Work Act. After thorough analysis, the commission determined that while some clauses were contentious, they did not, on balance, contravene the principles of substantive fairness. The commission found that the overall agreement was a reasonable and fair representation of the terms that could be agreed upon between the parties.

The commission's final orders included the approval of the Forestworks Enterprise Agreement 2024 – 2027, subject to specific amendments that addressed some of the union's concerns. The amendments aimed to ensure that certain entitlements and conditions were more clearly defined and accessible to employees. The commission's decision thus upheld the agreement while making necessary adjustments to address fairness issues raised by the union.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established