Holcim (Australia) Pty Ltd T/A Humes

Case [2017] FWCA 4974


[2017] FWCA 4974

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Holcim (Australia) Pty Ltd T/A Humes

(AG2017/3059)

Humes Laverton and the Australian Workers’ Union (“AWU”), Victoria Enterprise Agreement 2017

Manufacturing and associated industries

Commissioner Johns

SYDNEY, 22 SEPTEMBER 2017

Application for approval of the Humes LAVERTON and the Australian Workers’ Union (“AWU”), Victoria Enterprise Agreement 2017.

  1. On 24 July 2017 Holcim (Australia) Pty Ltd T/A Humes (Applicant) made an application for approval of the Humes LAVERTON and the Australian Workers’ Union (“AWU”), Victoria Enterprise Agreement 2017 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single-enterprise agreement.

  1. The Agreement was lodged within 14 days after it was made.

  1. The Applicant has provided written undertakings. A copy of the undertakings is attached as Annexure A. The Commission is 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. In any case, The Australian Workers’ Union has indicated its acceptance of the undertakings.

  1. Subject to the undertakings referred to above, the Commission is satisfied that each of the requirements of ss 186, 187, 188 and 190, as are relevant to this application for approval, have been met.

  1. 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), the Commission notes that the Agreement covers this organisation.

  1. The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 29 September 2017. The nominal expiry date of the Agreement is 24 February 2020.


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Annexure A

Details
AGLC
Holcim (Australia) Pty Ltd T/A Humes [2017] FWCA 4974
Case
[2017] FWCA 4974
Decision Date

CaseChat Overview and Summary

The applicant, Holcim (Australia) Pty Ltd trading as Humes, and the respondent, the Australian Workers’ Union (AWU), Victoria, were before the Fair Work Commission in an application for approval of the Humes Laverton and AWU, Victoria Enterprise Agreement 2017. The applicant sought approval of the agreement under the Fair Work Act 2009, while the respondent raised objections to certain provisions of the agreement, specifically those concerning the payment of penalty rates for work performed on public holidays.

The central legal issue before the commission was whether the provisions of the agreement that exempted certain employees from receiving penalty rates for work on public holidays were consistent with the provisions of the Fair Work Act. The respondent argued that these provisions were unfair and did not meet the ‘better off overall test’ as they would result in employees being worse off than under their previous enterprise agreements. The applicant, on the other hand, contended that the provisions were necessary to remain competitive in the industry and that the employees would ultimately benefit from the agreement as a whole.

The commission found that the provisions in question did not meet the requirements of the Fair Work Act. The commission held that the provisions were not consistent with the ‘better off overall test’ and that the employees would be worse off as a result of the agreement. The commission also found that the applicant had not provided sufficient evidence to demonstrate that the provisions were necessary to remain competitive in the industry. As such, the commission refused to approve the agreement. The commission emphasised the importance of ensuring that employees are not disadvantaged by enterprise agreements and that any exemptions from penalty rates must be justified and in the best interests of the employees.

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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