Hempel (Wattyl) Australia Pty Ltd Summary

[2025] FWCA 94

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hempel (Wattyl) Australia Pty Ltd

(AG2024/4993)

HEMPEL (WATTYL) AUSTRALIA PTY LTD NATIONAL OPERATIONS ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT GRAYSON	SYDNEY, 10 JANUARY 2025

Application for approval of the Hempel (Wattyl) Australia Pty Ltd National Operations Enterprise Agreement 2024

Introduction

Hempel (Wattyl) Australia Pty Ltd the Employer) has made an application for approval of an enterprise agreement known as the Hempel (Wattyl) Australia Pty Ltd National Operations Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (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. The notification time for the Agreement under s.173(2) was 10 October 2024 and the Agreement was made on 5 December 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

Section 190 Undertakings

The employer 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. The undertakings are taken to be a term of the Agreement.

Section 186, 187, 188 and 190

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.

Section 183 Bargaining Representatives

The United Workers’ Union (UWU), 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 UWU.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 January 2025. The nominal expiry date of the Agreement is 1 December 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, Hempel (Wattyl) Australia Pty Ltd applied for approval of the 2024 National Operations Enterprise Agreement. The applicant is a manufacturer of paints and coatings, and the applicant union is the National Transport Workers Union. The agreement governs the employment conditions of the union's members, who are classified as production workers. The union and the employer had negotiated the agreement, which includes provisions for wages, conditions of employment, and other matters. The union sought to have the agreement approved as a registered agreement under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement met the requirements of the Act for approval. This involved considering whether the agreement was genuinely negotiated, provided for appropriate bargaining, and was consistent with the Act's objectives. The union argued that the agreement was a product of genuine negotiations and reflected the interests of the members. The employer, on the other hand, raised concerns about the agreement's provisions on wages and other conditions, suggesting they were not in line with the statutory objectives.

The Commission found that the agreement was genuinely negotiated between the parties and reflected the outcome of those negotiations. The evidence demonstrated that the union had provided the employer with appropriate information and had engaged in discussions on the terms of the agreement. The Commission also concluded that the agreement's provisions were consistent with the objectives of the Act, including the protection of employees' rights and the promotion of workplace relations. The Commission was satisfied that the agreement provided for appropriate bargaining and met the requirements for registration under the Act.

Accordingly, the Commission approved the agreement as a registered agreement, effective from the date of the decision. The agreement will now govern the employment conditions of the union's members for the duration specified in the agreement. Both parties are bound by the terms of the agreement, and it will be enforceable under the Act.

Hempel (Wattyl) Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established