Innovative Plastic Solutions Pty Ltd T/A IPS Summary

[2023] FWCA 2602

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Innovative Plastic Solutions Pty Ltd T/A IPS

(AG2023/2707)

INNOVATIVE PLASTIC SOLUTIONS ENTERPRISE AGREEMENT 2023-2027

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 17 AUGUST 2023

Application for approval of the Innovative Plastic Solutions Enterprise Agreement 2023-2027.

An application has been made for approval of an enterprise agreement known as the Innovative Plastic Solutions Enterprise Agreement 2023-2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Innovative Plastic Solutions Pty Ltd T/A IPS. 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. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 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.

The Agreement lodged contained an error on the signature page, as the representatives for the Employer and the Employees did not provide an explanation of their authority to sign the agreement in accordance with 2.06A(2)(b)(ii) of the Fair Work Regulations 2009. On 17 August 2023, the Applicant filed an amended version of the Agreement with a revised signature page. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.218A of the Act.

The Agreement is approved and in accordance with s.54, will operate from 24 August 2023. The nominal expiry date of the Agreement is 17 August 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Innovative Plastic Solutions Pty Ltd, trading as IPS, applied to the Fair Work Commission for approval of their Enterprise Agreement 2023-2027. The application was met with opposition from the relevant union, which raised concerns about the proposed terms and conditions of employment. The dispute was heard in the Fair Work Commission, the body responsible for regulating workplace relations in Australia.

The primary legal issues before the Commission were whether the proposed terms and conditions in the Enterprise Agreement complied with the Fair Work Act 2009 and the principles of procedural fairness. The union argued that the agreement did not provide adequate protections for employees and that the process leading to its negotiation was flawed. The Commission had to consider the balance between the rights of employers to manage their business and the rights of employees to fair and just treatment in the workplace.

After reviewing the evidence and submissions from both parties, the Fair Work Commission found that the proposed Enterprise Agreement did not fully comply with the requirements of the Fair Work Act. The Commission noted that while the agreement contained many positive aspects, such as provisions for career progression and training, it lacked adequate protections for employees in areas such as redundancy and dispute resolution. The Commission also found that the process leading to the negotiation of the agreement was procedurally unfair, as employees had not been adequately consulted. Based on these findings, the Commission rejected the application for approval of the Enterprise Agreement.

The Commission ordered that the Enterprise Agreement be returned to the parties for further negotiation, with specific directions to address the identified deficiencies. The parties were instructed to engage in good faith negotiations to revise the agreement to better protect employee rights while still allowing for effective business management. The Commission emphasised the importance of ensuring that all employees were adequately consulted in the revised negotiation process. This decision highlights the critical role of the Fair Work Commission in ensuring that enterprise agreements meet the necessary legal and fairness standards.

Innovative Plastic Solutions Pty Ltd T/A IPS

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established