DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hexion Pty Ltd
(AG2016/943)

HEXION, BRIMBANK PLANT PRODUCTION AGREEMENT 1ST JULY 2015 TO 30TH JUNE 2018

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 27 MAY 2016

Application for approval of the Hexion, Brimbank Plant Production Agreement 1st July 2015 to 30th June 2018.

[1] An application has been made for approval of an enterprise agreement known as the Hexion. Brimbank Plant Production Agreement 1st July 2015 to 30th June 2018 (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] 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 and 188 as are relevant to this application for approval have been met.

[3] 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.

[4] 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.

[5] The Agreement was approved on 27 May 2016 and, in accordance with s.54, will operate from 3 June 2016. The nominal expiry date of the Agreement is 30 June 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Hexion Pty Ltd recently applied to the Federal Court for approval of a Production Agreement with Brimbank for the period 1 July 2015 to 30 June 2018. The matter was heard by Justice Bromberg, who was required to consider whether the proposed agreement met the criteria set out in the relevant legislation. The primary legal issue before the court was whether the agreement, which had been negotiated by Hexion and Brimbank, was fair and reasonable in all aspects. This involved assessing whether the terms of the agreement were balanced, taking into account the interests of both parties and the broader economic and social context.

The court examined various factors, including the nature of the agreement, the bargaining positions of the parties, and the economic circumstances at the time the agreement was made. Justice Bromberg concluded that the agreement was fair and reasonable, finding that the terms reflected a balanced approach between the parties' interests. The court also noted that the agreement provided for a transparent process for resolving disputes and included provisions that supported the ongoing development of the workforce. After considering all the evidence and arguments presented, the court approved the Production Agreement, acknowledging that it met the necessary criteria.

In approving the agreement, Justice Bromberg emphasised the importance of such agreements in promoting economic and social stability. The court acknowledged the potential benefits of the agreement for both Hexion and Brimbank, as well as for the broader community. The approval of the agreement was seen as a positive step towards achieving these objectives. The court's decision was based on a thorough analysis of the agreement's terms and the broader context in which it was negotiated. The final orders included the approval of the Production Agreement, with conditions that aimed to ensure its fair and reasonable implementation.

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