DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hexion Australia Pty Ltd
(AG2018/6159)

HEXION AUSTRALIA PTY LTD ENTERPRISE BARGAINING AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT BEAUMONT	PERTH, 5 MARCH 2019

Application for approval of the Hexion Australia Pty Ltd Enterprise Bargaining Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Hexion Australia Pty Ltd Enterprise Bargaining Agreement 2018 (the Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Hexion Australia 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, and on the basis of the material contained in the application and accompanying statutory declaration, 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), and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[7] In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

[8] The Agreement was approved on 5 March 2019 and, in accordance with s 54, will operate from 12 March 2019. The nominal expiry date of the Agreement is 1 October 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Hexion Australia Pty Ltd applied to the Fair Work Commission for approval of the Hexion Australia Pty Ltd Enterprise Bargaining Agreement 2018. The respondent, Australian Manufacturing Workers' Union, contested the application on various grounds, including the fairness of the agreement and its compliance with statutory requirements. The matter was heard before the Commission, which was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The central legal issues the Commission had to address involved the fairness and compliance of the proposed agreement. Specifically, the Commission examined whether the agreement was made in good faith, whether it complied with the procedural fairness requirements, and whether it met the substantive fairness standards. Additionally, the Commission considered whether the agreement contained appropriate provisions for minimum entitlements, including minimum wages and conditions of employment.

In assessing these issues, the Commission undertook a detailed review of the agreement's provisions and the process through which it was negotiated. The Commission found that the agreement was made in good faith, that the negotiation process was procedurally fair, and that the agreement contained provisions that were substantively fair. The Commission also confirmed that the agreement complied with all relevant statutory requirements and provided for appropriate minimum entitlements. Based on these findings, the Commission approved the agreement, concluding that it met all necessary criteria for approval under the Act.

Hexion Australia 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