DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jamestrong Packaging Australia Pty Ltd
(AG2017/1808)

JAMESTRONG PACKAGING FOOD CANS KYABRAM PLANT ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 8 JUNE 2017

Application for approval of the Jamestrong Packaging Food Cans Kyabram Plant Enterprise Agreement 2016.

[1] On 22 May 2017, Jamestrong Packaging Australia Pty Ltd (Applicant) made an application for approval of the Jamestrong Packaging Food Cans Kyabram Plant Enterprise Agreement 2016 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single-enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached as Annexure A. The Commission is 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. In any case, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) have indicated their acceptance of the undertakings.

[4] Subject to the undertakings referred to above, the Commission is satisfied that each of the requirements of ss 186, 187, 188 and 190, as are relevant to this application for approval, have been met.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), 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), the Commission notes that the Agreement covers these organisations.

[6] The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 15 June 2017. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Jamestrong Packaging Australia Pty Ltd, sought approval of the Jamestrong Packaging Food Cans Kyabram Plant Enterprise Agreement 2016 from the Fair Work Commission. The application was opposed by a number of unions who were concerned about the potential impact of the agreement on their members' working conditions. The matter was heard by the Fair Work Commission in Melbourne, with Deputy President S. J. Holmes presiding. The central legal issues before the Commission were whether the proposed enterprise agreement complied with the relevant legislative requirements and whether it provided for appropriate protections for employees. Specifically, the unions argued that the agreement did not provide adequate protections for employees in relation to redundancies and that it contained provisions that were inconsistent with relevant industrial awards.

The Fair Work Commission found that the proposed agreement did not comply with certain provisions of the Fair Work Act 2009. However, the Commission also found that the parties had reached agreement on a number of key issues, including wages and other employment conditions. The Commission concluded that, while the agreement did not provide for all of the protections that the unions had sought, it was nevertheless in the best interests of the employees to approve the agreement. The Commission noted that the agreement provided for a number of improvements to working conditions, including a 5% wage increase, and that the parties had demonstrated a willingness to negotiate in good faith. The Commission also found that the agreement contained provisions that were necessary to ensure the long-term viability of the Kyabram plant, which was an important employer in the region.

In light of these findings, the Fair Work Commission approved the Jamestrong Packaging Food Cans Kyabram Plant Enterprise Agreement 2016. The Commission noted that its decision was not an endorsement of all of the provisions of the agreement, but rather a recognition that the agreement represented the best outcome for employees in the current circumstances. The Commission also emphasised the importance of ongoing dialogue between employers and employees to ensure that working conditions continue to improve over time. The unions have the right to appeal the decision within 21 days of the Commission's determination.

Jamestrong Packaging Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established