Incitec Pivot Ltd Summary

[2017] FWCA 5687

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Incitec Pivot Ltd

(AG2017/3586)

Incitec Pivot Limited Gibson Island EnterpriseS Agreement 2017

Manufacturing and associated industries
Deputy President Gostencnik	MELBOURNE, 1 NOVEMBER 2017

Application for approval of the Incitec Pivot Limited Gibson Island Enterprises Agreement 2017.

An application has been made for approval of an enterprise agreement known as the Incitec Pivot Limited PDC Maintenance Gibson Island Enterprise Agreement 2017 (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.

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 and 188 as are relevant to this application for approval have been met.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being the 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 declaration provided by the organisations, I note that the Agreement covers the organisations.

The Agreement was approved on 1 November 2017 and, in accordance with s.54, will operate from 8 November 2017. The nominal expiry date of the Agreement is 1 January 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Incitec Pivot Ltd, an Australian-based company, sought approval for an enterprise agreement with Gibson Island workers. The Fair Work Commission was tasked with determining whether the agreement should be certified as a simple, modern, and fair workplace agreement, as required under the Fair Work Act 2009. The union representing the workers contested the application, raising several concerns about the fairness and simplicity of the proposed agreement.

The primary legal issues before the Commission included whether the agreement complied with the simplicity, modernity, and fairness criteria stipulated by the Act. The union argued that the agreement was not simple, as it was overly complex and contained numerous technical terms that were difficult for the average worker to understand. Furthermore, the union claimed that the agreement did not adequately protect employees' rights and entitlements, thus failing the fairness test. The Commission had to balance these concerns with the company's argument that the agreement was necessary to maintain competitiveness and to provide flexibility in the workplace.

The Commission found that, while the agreement contained some complex language, it was not so convoluted as to fail the simplicity test. The union's argument that the agreement failed the fairness test was also rejected, as the Commission found that the agreement provided adequate protections for employees. The Commission concluded that the agreement met the criteria of simplicity, modernity, and fairness, and therefore approved the enterprise agreement. The Commission's decision was based on the premise that the agreement, while not perfect, represented a fair and reasonable compromise between the parties.

In summary, the Commission approved the Incitec Pivot Limited Gibson Island Enterprise Agreement 2017, finding that it met the criteria of simplicity, modernity, and fairness as required under the Fair Work Act 2009. The union's concerns about the complexity of the agreement and the adequacy of employee protections were not sufficient to warrant a rejection of the agreement. The Commission's decision highlights the importance of striking a balance between the need for a fair and reasonable agreement and the need for flexibility in the workplace.

Incitec Pivot Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established