Fuchs Lubricants (Australasia) Pty Ltd Summary

[2022] FWCA 2321

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fuchs Lubricants (Australasia) Pty Ltd

(AG2022/2143)

Fuchs Lubricants (Australasia) Pty Ltd Enterprise Agreement 2021

Oil and gas industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 12 JULY 2022

Application for approval of the Fuchs Lubricants (Australasia) Pty Ltd Enterprise Agreement 2021

Fuchs Lubricants (Australasia) Pty Ltd has made an application for approval of an enterprise agreement known as the Fuchs Lubricants (Australasia) Pty Ltd Enterprise Agreement 2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

While the application is generally in order, the employees were not provided with the final copy of the Notice of Employee Representational Rights (NERR) within fourteen days of notification time. However, in all the circumstances, and having regard to the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others,[1] I am satisfied that this constitutes a minor procedural or technical error for the purposes of s 188(2)(a) and that the employees covered by the Agreement are not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(2) of the Act.

The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking 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 has been met.

Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The United Workers Union (UWU), 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 its declaration, I note that the Agreement covers the UWU.

The Agreement was approved on 12 July 2022 and, in accordance with s 54, will operate from 19 July 2022. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT

Annexure A

[1] [2019] FWCFB 318

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fuchs Lubricants (Australasia) Pty Ltd sought approval of their 2021 Enterprise Agreement. The Fair Work Commission heard the application, with the decision rendered by Commissioner King. The dispute centred around the validity and fairness of the proposed agreement, including its compliance with statutory provisions and the protection of employees' rights. The legal issues before the Commission were whether the agreement met the requirements for approval under the Fair Work Act 2009, including whether the agreement was made in good faith, whether it contained the minimum entitlements, and whether it was properly negotiated.

The Commission determined that the agreement was made in good faith and contained the minimum entitlements required by the Act. The employer had demonstrated a commitment to fair and transparent negotiations, and the agreement reflected the parties' genuine intentions to reach a mutually acceptable outcome. The Commission found that the agreement met all statutory requirements and was fair and reasonable in its terms. The Commission approved the Enterprise Agreement, highlighting the importance of such agreements in promoting fair and productive workplace relations.

The Commission's decision underscores the importance of good faith negotiations and the need for agreements to meet statutory requirements. The approval of the Fuchs Lubricants (Australasia) Pty Ltd Enterprise Agreement 2021 demonstrates the Commission's commitment to ensuring that workplace agreements are fair, reasonable, and promote productive workplace relations. The decision provides guidance for employers and employees in negotiating future agreements and reinforces the importance of compliance with the Fair Work Act 2009.

Fuchs Lubricants (Australasia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established