DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Glassworks (Aust) Pty Ltd
(AG2018/2453)

GLASSWORKS (AUST) PTY LTD ENTERPRISE AGREEMENT - 2018-2022

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 14 SEPTEMBER 2018

Application for approval of the Glassworks (Aust) Pty Ltd Enterprise Agreement - 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the Glassworks (Aust) Pty Ltd Enterprise Agreement - 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Glassworks (Aust) Pty Ltd. 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.

[3] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] 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.

[5] The Agreement was approved on 14 September 2018 and, in accordance with s.54, will operate from 21 September 2018. The nominal expiry date of the Agreement is 14 September 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Glassworks (Aust) Pty Ltd, an employer, applied for approval of an enterprise agreement with its employees represented by the United Workers Union (UWU). The application was made to the Fair Work Commission (FWC), which was required to determine whether the agreement was appropriate for approval. The UWU opposed the application on several grounds, including that the agreement did not comply with the 'better off overall test' (BOOT). This test ensures that employees are not worse off financially under the new agreement than they were under the previous one.

The central issue before the FWC was whether the proposed agreement met the BOOT, which requires that employees be at least as well off under the new agreement as they would have been under the previous one. The UWU argued that the proposed agreement did not satisfy this test, as it resulted in reduced wages and conditions for some employees. The FWC considered the economic context, the parties' bargaining positions, and the terms of the proposed agreement in assessing whether the BOOT was satisfied.

After considering the submissions from both parties and the evidence presented, the FWC found that the proposed agreement did not meet the BOOT. The FWC determined that the proposed changes to wages and conditions would result in some employees being worse off overall. Consequently, the FWC did not approve the agreement. The FWC noted that the agreement had some positive aspects, but these were outweighed by the negative impact on certain employees' wages and conditions.

No orders were made as the application for approval was dismissed.

Glassworks (Aust) 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