DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics
(AG2018/3482)

R/MAX (A DIVISION OF HUNTSMAN CHEMICAL COMPANY AUST. PTY LTD) ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 13 FEBRUARY 2019

Application for approval of the R/Max (A division of Huntsman Chemical Company Aust. Pty Ltd) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the R/Max (A division of Huntsman Chemical Company Aust. Pty Ltd) Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics. 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] The employer did not notify relevant employees of the time and place at which the vote occurred by the start of the access period. Pursuant to s.188(2), I am satisfied that the agreement would have been genuinely agreed to but for the minor procedural error made in relation to the requirement in s.180(3). I am satisfied that the employees covered by the agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

[4] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Construction, Forestry, Mining and Energy 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.

[6] The Agreement was approved on 13 February 2019 and, in accordance with s.54, will operate from 20 February 2019. The nominal expiry date of the Agreement is 25 November 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission was made by Huntsman Chemical Company Australia Pty Limited, trading as RMAX Rigid Cellular Plastics, seeking approval of the R/Max Enterprise Agreement 2017. The dispute arose from negotiations between the company and its employees over terms and conditions of employment, as provided for under the Fair Work Act 2009. The Commission's task was to determine whether the proposed agreement met the "better off overall test" and the "no disadvantaged test" as stipulated in the legislation, ensuring that the employees would not be worse off and that no group of employees would be disadvantaged compared to their previous conditions.

The central legal issues for the Commission to resolve were whether the proposed agreement would result in employees being better off overall and whether it would disadvantage any group of employees. This involved assessing the financial and non-financial benefits provided by the agreement against the existing conditions of employment. The Commission had to consider various factors, including wage increases, penalty rates, and other employment terms to ascertain if the proposed agreement provided a net benefit to the employees.

The Fair Work Commission determined that the proposed R/Max Enterprise Agreement 2017 met the better off overall test and did not disadvantage any group of employees. The Commission concluded that the agreement provided employees with a fair and reasonable set of terms and conditions, including wage increases and improvements in working conditions. As a result, the Commission approved the agreement, recognising its benefits and the fair process through which it was negotiated. The approval ensures that the employees of Huntsman Chemical Company Australia Pty Limited, trading as RMAX Rigid Cellular Plastics, will be governed by the terms of the new enterprise agreement.

Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established