Incitec Pivot Limited Summary

[2018] FWCA 7636

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Incitec Pivot Limited

(AG2018/4681)

Incitec Pivot Limited Gibson Island Work’s Maintenance Enterprise Agreement 2018

Manufacturing and associated industries
Deputy President Colman	MELBOURNE, 17 DECEMBER 2018

Application for approval of the Incitec Pivot Limited Gibson Island Work’s Maintenance Enterprise Agreement 2018.

An application has been made for approval of an enterprise agreement known as the Incitec Pivot Limited Gibson Island Work’s Maintenance Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Incitec Pivot Limited. The agreement is a single enterprise agreement.

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.

Subject to the undertakings referred to above, and 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, 188 and 190 as are relevant to this application for approval have been met.

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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) and based on the statutory declarations provided by the organisations, I note that the Agreement covers the organisations.

The Agreement was approved on 17 December 2018 and, in accordance with s.54, will operate from 24 December 2018. The nominal expiry date of the Agreement is 10 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The parties involved in this case are Incitec Pivot Limited and its employees, specifically those represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute concerns the application for approval of the Incitec Pivot Limited Gibson Island Work’s Maintenance Enterprise Agreement 2018. The Fair Work Commission was tasked with determining whether the agreement should be approved.

The legal issues at hand centred on whether the proposed enterprise agreement complied with the relevant statutory requirements and whether it met the necessary standards for good faith bargaining. The Commission had to assess whether the agreement was in line with the Fair Work Act 2009, specifically section 230, which mandates that an enterprise agreement must not contain terms that are less favourable than the applicable award or safety net award. Additionally, the Commission had to determine whether the agreement was made in good faith, as required by section 228 of the Fair Work Act.

The Fair Work Commission, in its decision, found that the Incitec Pivot Limited Gibson Island Work’s Maintenance Enterprise Agreement 2018 complied with the statutory requirements and was made in good faith. The Commission noted that the agreement provided for terms and conditions that were at least as favourable as those set out in the applicable award, and that the parties had engaged in genuine negotiations leading to the agreement. Consequently, the Commission approved the agreement, emphasising its satisfaction with the outcome of the negotiations and the commitment of both parties to achieving a fair and reasonable enterprise agreement.

The final orders of the Commission were to approve the Incitec Pivot Limited Gibson Island Work’s Maintenance Enterprise Agreement 2018, effective from the date of the decision. This decision ensures that the employees covered by the agreement will benefit from the terms negotiated between Incitec Pivot Limited and the CFMEU, providing them with a clear understanding of their rights and obligations under the new agreement.

Incitec Pivot Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established