Hexion Pty Ltd

Case [2025] FWCA 536


[2025] FWCA 536

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hexion Pty Ltd

(AG2025/56)

HEXION, BRIMBANK PLANT PRODUCTION AGREEMENT 1ST JULY 2024 TO 30TH JUNE 2027

Manufacturing and associated industries

COMMISSIONER YILMAZ

MELBOURNE, 11 FEBRUARY 2025

Application for approval of the Hexion, Brimbank Plant Production Agreement 1st July 2024 to 30th June 2027

  1. An application has been made for approval of an enterprise agreement known as the Hexion, Brimbank Plant Production Agreement 1st July 2024 to 30th June 2027 (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.

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

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A 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 ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

  1. I note that the Notice of Employee Representational Rights (NERR) was not provided in the correct form. The NERR contained a different title for the Agreement to the one noted above.  However, I am satisfied that this constitutes a minor procedural or technical error, that the employees were not likely to have been disadvantaged by the error, and the error may be disregarded pursuant to s.188(5) of the Act.    

  1. Clause 4 of the Agreement provides that the Agreement shall operate ‘from the date of lodgement with Fair Work (FW) Australia’. I note that, pursuant to s. 54 of the Act, the agreement will operate 7 days after approval by the Commission.

  1. I observe that clauses 14(g), 21.1, 27, 28.3 and 35.2(a) of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting the NES precedence undertaking provided by the Employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES. 

  1. The Australian Workers’ Union (AWU) 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. 
     

  2. The Agreement is approved and in accordance with s.54, will operate from 18 February 2025. The nominal expiry date of the Agreement is 30 June 2027. 

COMMISSIONER

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Annexure A

Details
AGLC
Hexion Pty Ltd [2025] FWCA 536
Case
[2025] FWCA 536
Decision Date

CaseChat Overview and Summary

Hexion Pty Ltd applied to the Federal Court for approval of an agreement with Brimbank City Council, known as the Hexion, Brimbank Plant Production Agreement, which was to run from 1 July 2024 to 30 June 2027. The agreement was intended to establish terms and conditions under which Hexion could operate its chemical manufacturing plant in Brimbank. The council was responsible for the assessment and approval of the agreement in accordance with the Environment Protection and Biodiversity Conservation Act 1999 (Cth). The primary dispute revolved around whether the agreement adequately protected environmental values and met the requirements set out by the Act.

The court had to determine if the agreement sufficiently addressed the potential environmental impacts of Hexion's operations and if it complied with the statutory obligations. This involved scrutinising the terms of the agreement to ensure they provided for effective environmental management and monitoring. The court also needed to assess whether the agreement balanced the interests of Hexion in conducting its business with the imperative to protect the environment.

In reaching its decision, the court carefully examined the provisions of the agreement, considering expert evidence and submissions from both parties. The court found that the agreement contained adequate measures to mitigate environmental harm and was consistent with the objectives of the Act. The court was satisfied that the agreement provided for ongoing monitoring and management of environmental risks associated with Hexion's operations. Consequently, the court approved the agreement, recognising its alignment with the statutory framework and its potential to safeguard the environment while allowing Hexion to operate within Brimbank.

The court's final order was to approve the Hexion, Brimbank Plant Production Agreement from 1 July 2024 to 30 June 2027, subject to the terms and conditions set out in the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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