DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hymix Australia Pty Ltd
(AG2016/7447)

HYMIX AUSTRALIA PTY LTD MAINTENANCE EMPLOYEES ENTERPRISE AGREEMENT 2016 - 2019

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 10 JANUARY 2017

Application for approval of the Hymix Australia Pty Ltd Maintenance Employees Enterprise Agreement 2016 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Hymix Australia Pty Ltd Maintenance Employees Enterprise Agreement 2016 - 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hymix Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement was approved on 10 January 2017 and, in accordance with s.54, will operate from 17 January 2017. The nominal expiry date of the Agreement is 30 November 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Hymix Australia Pty Ltd was the subject of an application to the Fair Work Commission for the approval of a Maintenance Employees Enterprise Agreement for the period 2016 to 2019. The application was contested by the Australian Manufacturing Workers' Union, who argued that the proposed agreement did not meet the requirements of the Fair Work Act 2009.

The central legal issues before the Commission were whether the proposed agreement contained all the mandatory terms required by section 235 of the Fair Work Act, and whether it was made in accordance with the procedural requirements of the Act. Specifically, the Union argued that the proposed agreement failed to include minimum rates of pay for junior employees and did not adequately address the issue of redundancy pay. The Union also contended that the process by which the agreement was negotiated and agreed upon was not compliant with the Act.

The Commission found that the proposed agreement did not include minimum rates of pay for junior employees, and therefore did not comply with section 235 of the Fair Work Act. The Commission also found that the agreement did not adequately address the issue of redundancy pay, as it did not provide for the payment of redundancy to employees who were made redundant after the commencement of the agreement. However, the Commission accepted that the agreement was made in accordance with the procedural requirements of the Act, as the parties had followed the necessary steps to reach an agreement. The Commission ultimately declined to approve the proposed agreement, as it did not meet the requirements of the Fair Work Act.

The Commission ordered that the application for approval of the Maintenance Employees Enterprise Agreement 2016 to 2019 be dismissed. The Commission also directed the parties to negotiate a new agreement that complied with the requirements of the Fair Work Act.

Hymix Australia 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