Incitec Pivot Limited

[2014] FWCA 7732

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Incitec Pivot Limited
(AG2014/7961)

INCITEC PIVOT LIMITED PDC OPERATIONS GIBSON ISLAND ENTERPRISE AGREEMENT

Manufacturing and associated industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 31 OCTOBER 2014

Application for approval of the Incitec Pivot Limited PDC Operations Gibson Island Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Incitec Pivot Limited PDC Operations Gibson Island Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Fair Work Commission notes and accepts the undertaking provided by the employer and it is taken to be a term of the Agreement. A copy of the undertaking is attached to this decision as Annexure A.

[4] The agreement does not contain a consultation term with the content required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[5] The Australian Workers’ Union (AWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by s.201(2) I note that the Agreement covers this organisation.

[6] The Agreement is approved. In accordance with s.54(1) it will operate from 7 November 2014. The nominal expiry date of the Agreement is 31 December 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Incitec Pivot Limited, sought approval of the Incitec Pivot Limited PDC Operations Gibson Island Enterprise Agreement 2014. The respondents were the Australian Manufacturing Workers Union and the Electrical Trades Union. The dispute concerned the terms and conditions of employment for certain employees of the applicant, who operated a fertiliser manufacturing plant on Gibson Island in Queensland. The central issue before the Commission was whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009.

The Commission considered whether the agreement provided for minimum rates of pay and conditions that met or exceeded the relevant awards and if it contained provisions that were contrary to public policy or not in the best interests of the employees. The applicant argued that the agreement was fair and reasonable, while the unions contended that it did not adequately protect employee entitlements and provided for excessive working hours. The Commission examined the evidence and submissions from both parties before reaching its decision.

After careful consideration of the evidence and submissions, the Commission found that the proposed enterprise agreement did not comply with the requirements of the Fair Work Act. The agreement did not provide for minimum rates of pay and conditions that met or exceeded the relevant awards, and certain provisions were contrary to public policy. The Commission also found that the agreement did not adequately protect employee entitlements and provided for excessive working hours. Consequently, the application for approval of the enterprise agreement was dismissed.

The Fair Work Commission ordered that the Incitec Pivot Limited PDC Operations Gibson Island Enterprise Agreement 2014 be not approved. The Commission directed the parties to continue bargaining in good faith to reach an agreement that complied with the Fair Work Act. The decision highlighted the importance of ensuring that enterprise agreements provide fair and reasonable terms and conditions of employment for employees, while also complying with the relevant legislative requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established