Hexion Australia Pty Ltd Summary

[2016] FWCA 1921

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hexion Australia Pty Ltd

(AG2016/2497)

HEXION AUSTRALIA PTY LTD ENTERPRISE BARGAINING

AGREEMENT 2016

Manufacturing and associated industries

COMMISSIONER LEE

MELBOURNE, 30 MARCH 2016

Application for approval of the Hexion Australia Pty Ltd Enterprise Bargaining Agreement

2016.

[1] An application has been made for approval of an enterprise agreement known as the

Hexion Australia Pty Ltd Enterprise Bargaining Agreement 2016 (the Agreement). The

application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made

by Hexion Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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] 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.

[6] 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.
[2016] FWCA 1921

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from

6 March 2016. The nominal expiry date of the Agreement is 5 April 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

[2016] FWCA 1921

Annexure A

CaseChat Overview and Summary

Hexion Australia Pty Ltd applied for approval of the Hexion Australia Pty Ltd Enterprise Bargaining Agreement 2016. The application was made under section 185 of the Fair Work Act 2009, and the agreement is a single enterprise agreement. The Australian Workers’ Union, a bargaining representative for the agreement, has provided notice under section 183 of the Act that it wishes the agreement to cover it. The Commissioner was required to determine whether the agreement met the requirements of sections 186, 187, 188 and 190 of the Act and whether the agreement would cause financial detriment to any employee covered by the agreement or result in substantial changes to the agreement.

The Commissioner was satisfied that the agreement met the requirements of sections 186, 187, 188 and 190 of the Act. The Commissioner was also satisfied that the agreement would not cause financial detriment to any employee covered by the agreement and would not result in substantial changes to the agreement. The Commissioner noted that the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the agreement and that the model flexibility term prescribed by the Fair Work Regulations 2009 is also taken to be a term of the agreement. The Commissioner approved the agreement and determined that it would operate from 6 March 2016, with a nominal expiry date of 5 April 2018.

This case provides guidance on the requirements for approval of an enterprise bargaining agreement under the Fair Work Act 2009. The Commissioner's decision demonstrates that the agreement must meet certain requirements, including that it does not cause financial detriment to any employee covered by the agreement and does not result in substantial changes to the agreement. The Commissioner's decision also highlights the importance of including certain terms in the agreement, such as the model consultation term and the model flexibility term. Finally, the decision provides guidance on the process for approving an enterprise bargaining agreement, including the role of bargaining representatives and the importance of notice under section 183 of the Act.

Hexion 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