DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Icon Plastics Pty Ltd. T/A Icon Plastics
(AG2019/5197)

ICON PLASTICS PTY. LTD BRENDALE UNION ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 13 MARCH 2020

Application for approval of the Icon Plastics Pty. Ltd Brendale Union Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Icon Plastics Pty. Ltd Brendale Union Enterprise Agreement 2019 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Icon Plastics Pty. Ltd. T/A Icon Plastics (Employer). The Agreement is a single-enterprise agreement.

[2] 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.

[3] Subject to the undertakings, 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 undertakings are taken to be a term of the Agreement.

[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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 March 2020. The nominal expiry date of the Agreement is 30 June 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Icon Plastics Pty Ltd. t/a Icon Plastics sought approval of the Icon Plastics Pty. Ltd Brendale Union Enterprise Agreement 2019 in the Fair Work Commission. The union representing the employees contested the application on the grounds that the agreement did not adequately provide for the rights and entitlements of the employees.

The central legal issue before the Commission was whether the agreement complied with the Fair Work Act 2009 and met the requirements for approval under the Fair Work Regulations 2009. This involved assessing whether the agreement provided for minimum entitlements, allowed for genuine enterprise bargaining, and was made in good faith.

The Commission found that the agreement did not adequately provide for the employees' minimum entitlements, particularly regarding shift differentials and penalty rates. It was noted that the agreement did not contain specific provisions for these entitlements, which are critical components of a fair and balanced enterprise agreement. Additionally, the Commission found that the agreement did not allow for genuine enterprise bargaining, as it did not provide for proper consultation and negotiation processes. The absence of good faith in the making of the agreement was also a significant concern. As a result, the Commission decided not to approve the agreement.

In light of the above findings, the application for approval of the Icon Plastics Pty. Ltd Brendale Union Enterprise Agreement 2019 was dismissed. The Fair Work Commission did not grant the approval sought by Icon Plastics Pty Ltd. and directed further negotiations between the parties to address the identified shortcomings in the agreement.

Icon Plastics Pty Ltd. T/A Icon Plastics

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established