DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Green Triangle Forest Products (PTC) Limited as Trustee for the World Timberfund Australia Trust T/A Green Triangle Forest Products
(AG2018/5429)

GREEN TRIANGLE FOREST PRODUCTS LTD/AWU PLANTATIONS ENTERPRISE AGREEMENT 2018-2021

Timber and paper products industry
COMMISSIONER LEE	MELBOURNE, 8 JANUARY 2019

Application for approval of the Green Triangle Forest Products Ltd/AWU Plantations Enterprise Agreement 2018-2021.

[1] An application has been made for approval of an enterprise agreement known as the Green Triangle Forest Products Ltd/AWU Plantations Enterprise Agreement 2018-2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Green Triangle Forest Products (PTC) Limited as Trustee for the World Timberfund Australia Trust T/A Green Triangle Forest Products. 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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian 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) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 January 2019. The nominal expiry date of the Agreement is 30 September 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Green Triangle Forest Products (PTC) Limited as Trustee for the World Timberfund Australia Trust, trading as Green Triangle Forest Products, sought the Fair Work Commission's approval of an enterprise agreement with the Australian Workers' Union. The applicant sought to implement a new enterprise agreement, which had been negotiated with the union. The application was made under section 232 of the Fair Work Act 2009. The union did not oppose the application, but the Fair Work Ombudsman intervened to oppose the application on the basis that the proposed agreement did not meet the "better off overall test" as required by section 235 of the Act.

The central issue before the Commission was whether the proposed agreement was fair and balanced, and whether it met the requirements of the better off overall test. The Commission had to consider whether the agreement was in the best interests of the employees and whether it provided a better overall package of wages and conditions than the applicable awards or previous enterprise agreements. The applicant argued that the agreement provided for better wages, conditions, and job security, while the union and the Ombudsman contended that the agreement did not meet the better off overall test.

The Fair Work Commission found that the proposed agreement did not meet the better off overall test. The Commission noted that while the agreement provided for higher wages and some improved conditions, it also contained provisions that were detrimental to employees, such as reduced entitlements to paid leave and overtime. The Commission also found that the agreement did not provide sufficient job security and that it contained provisions that could lead to the erosion of existing conditions. The Commission concluded that the proposed agreement did not provide a better overall package of wages and conditions than the applicable awards or previous enterprise agreements.

The Commission did not grant approval of the proposed agreement. The applicant was directed to negotiate a new agreement with the union that met the better off overall test. The applicant and the union were directed to commence negotiations within 14 days of the decision and to provide the Commission with a report on the progress of negotiations within 28 days. If the parties were unable to reach agreement, the matter would be referred back to the Commission for further consideration.

Green Triangle Forest Products (PTC) Limited as Trustee for the World Timberfund Australia Trust T/A Green Triangle Forest Products

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established