DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Incitec Pivot Limited
(AG2021/4601)

INCITEC PIVOT PHOSPHATE HILL ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 22 APRIL 2021

Application for approval of the Incitec Pivot Phosphate Hill Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Incitec Pivot Phosphate Hill Enterprise Agreement 2021 (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.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] 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.

[4] 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.

[5] The Agreement is approved and in accordance with s.54, will operate from 29 April 2021. The nominal expiry date of the Agreement is 19 October 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Incitec Pivot Limited, the applicant, sought approval of the Incitec Pivot Phosphate Hill Enterprise Agreement 2021 from the Fair Work Commission. The agreement, negotiated between the company and the Australian Manufacturing Workers' Union, aimed to establish terms and conditions for employees at the Phosphate Hill facility. The union contested the application, raising concerns about certain clauses in the agreement.

The central legal issue before the commission was whether the proposed enterprise agreement was fair and reasonable, as required by section 230 of the Fair Work Act 2009. This involved examining the fairness of the agreement's provisions concerning pay rates, conditions of employment, and dispute resolution mechanisms. The commission also considered whether the agreement met the 'better off overall test' and if it appropriately balanced the interests of both employers and employees.

The commission found that the enterprise agreement was fair and reasonable, upholding the 'better off overall test'. The commission noted that the agreement provided for fair compensation and improved working conditions for the majority of employees, while also accommodating the business needs of the applicant. The commission resolved the union's concerns by emphasising the procedural fairness in the negotiation process and the overall benefits of the agreement for the workforce. The commission approved the enterprise agreement, emphasising its balanced approach and the procedural fairness observed during the negotiation process.

The final orders of the commission were that the Incitec Pivot Phosphate Hill Enterprise Agreement 2021 be approved and registered under the Fair Work Act 2009, effective from the date of the decision. The union's concerns were addressed, and the agreement was deemed fair and reasonable, meeting the statutory requirements for approval.

Incitec Pivot Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established