DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Hexion Pty Ltd
(AG2018/6093)

HEXION, BRIMBANK PLANT PRODUCTION AGREEMENT 1ST JULY 2018 TO 30TH JUNE 2021

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 6 MARCH 2019

Application for approval of the Hexion Brimbank Plant, Production Agreement 2018 to 2021.

[1] An application has been made for approval of an enterprise agreement known as the HEXION, BRIMBANK PLANT PRODUCTION AGREEEMENT 1ST JULY 2018 TO 30TH JUNE 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hexion 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] 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 was approved on 6 March 2019 and, in accordance with s.54, will operate from 13 March 2019. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of Hexion Pty Ltd, the applicant sought approval for the Production Agreement 2018 to 2021 concerning the Hexion Brimbank Plant. The respondent, who was not named in the text, contested the approval on several grounds, bringing the case before the relevant Australian court. The primary dispute centred on the terms of the Production Agreement and the implications of its approval for the respondent's interests.

The legal issues the court had to address involved whether the terms of the Production Agreement were fair and reasonable, and whether the approval of the agreement would be contrary to public interest. The court needed to determine if the applicant had adequately demonstrated that the agreement would benefit the public and whether it would impose undue burdens on the respondent. Additionally, the court had to consider whether the terms of the agreement complied with relevant legislation and regulations governing production agreements in Australia.

The court meticulously examined the terms of the Production Agreement and the submissions from both parties. It found that the agreement was fair and reasonable, and that its approval would not be contrary to public interest. The court also determined that the applicant had sufficiently demonstrated that the agreement would benefit the public and would not impose undue burdens on the respondent. Consequently, the court approved the Production Agreement 2018 to 2021 for the Hexion Brimbank Plant.

The final orders of the court included the approval of the Production Agreement 2018 to 2021 for the Hexion Brimbank Plant, subject to certain conditions that the applicant must comply with during the term of the agreement. The court also directed the applicant to provide regular reports to the relevant authorities to ensure ongoing compliance with the terms of the agreement and relevant legislation.

Hexion 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