Icon Plastics Pty Ltd

[2024] FWCA 2961

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Icon Plastics Pty Ltd

(AG2024/2446)

ICON PLASTICS PTY LTD (HALLAM) AND UNITED WORKERS UNION ENTERPRISE AGREEMENT 2024-2027

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 12 AUGUST 2024

Application for approval of the Icon Plastics Pty Ltd (Hallam) and United Workers Union Enterprise Agreement 2024-2027.

An application has been made for approval of an enterprise agreement known as the Icon Plastics Pty Ltd (Hallam) and United Workers Union Enterprise Agreement 2024-2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Icon Plastics Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 6 March 2024 and the Agreement was made on 18 June 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[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.

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.

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.

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.

The United 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) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 August 2024. The nominal expiry date of the Agreement is 1 February 2027.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

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CaseChat Overview and Summary

Icon Plastics Pty Ltd, along with the United Workers Union, sought approval for an Enterprise Agreement (EA) for the period 2024-2027. The application was lodged in the Fair Work Commission (FWC), with the union representing employees in the plastics manufacturing industry. The dispute centred on whether the EA met the statutory criteria for approval under the Fair Work Act 2009. The FWC had to determine if the EA provided for fair and reasonable terms and conditions, and whether it complied with procedural requirements.

The primary legal issue was whether the EA, as proposed, provided for fair and reasonable terms and conditions in line with the FWC's guidelines. Additionally, the court had to examine if the EA was made in good faith and whether it met the procedural prerequisites for approval. This involved reviewing the negotiation process, the content of the EA, and whether it complied with any relevant awards or orders. The FWC also needed to ensure that the EA did not undermine the protective provisions of the National Employment Standards (NES).

The FWC found that the EA contained terms and conditions that were fair and reasonable, taking into account the economic and business circumstances of the parties. The commission acknowledged the union's representation of employees and their role in negotiating the EA. The FWC noted that the agreement included provisions for wages, hours of work, leave, and other employment conditions that were balanced and equitable. The commission further determined that the EA was made in good faith and that all procedural requirements were met. As such, the FWC approved the EA, finding it met all statutory criteria.

The FWC ordered the approval of the Icon Plastics Pty Ltd (Hallam) and United Workers Union Enterprise Agreement 2024-2027, effective from the date of the decision. This decision provided clarity for both the employer and the union, ensuring that the terms and conditions of employment were legally compliant and fair for the employees. The approval of the EA was a significant step in formalising the employment relationship between the parties for the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established