DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kimberly-Clark Australia Pty Ltd
(AG2017/1357)

KIMBERLY-CLARK AUSTRALIA INGLEBURN MILL ENTERPRISE AGREEMENT 2016

Clothing industry
COMMISSIONER ROE	MELBOURNE, 24 MAY 2017

Application for approval of the Kimberly-Clark Australia Ingleburn Mill Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Kimberly-Clark Australia Ingleburn Mill Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Kimberly-Clark Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Textile, Clothing and Footwear Union of Australia 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 was approved on 24 May 2017 and, in accordance with s.54, will operate from 31 May 2017. The nominal expiry date of the Agreement is 31 July 2019

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In this case, Kimberly-Clark Australia Pty Ltd sought approval of the Kimberly-Clark Australia Ingleburn Mill Enterprise Agreement 2016 from the Fair Work Commission. The dispute centred on whether the enterprise agreement should be approved, as it was submitted under section 176 of the Fair Work Act 2009. The nature of the agreement was that it provided for a transition to a 24/7 production model, resulting in changes to shift patterns and employee entitlements.

The legal issues before the court were whether the agreement provided for fair and reasonable terms, and if it was appropriate to approve the agreement under section 176 of the Fair Work Act. The central issue was whether the agreement met the statutory requirements for direct approval and if the changes proposed in the agreement were reasonable. The court needed to determine whether the agreement provided for fair and reasonable terms in accordance with the Act and whether it was appropriate to approve the agreement in light of the evidence and submissions made by the parties.

The Fair Work Commission found that the agreement did meet the statutory requirements for direct approval. The agreement provided for fair and reasonable terms, taking into account the needs of both the employees and the employer. The court noted that the agreement was the product of good faith negotiations between the parties and was in the best interests of both the employees and the employer. The court was satisfied that the agreement was appropriate to be approved and met the requirements of the Act. The court approved the agreement, recognising the changes proposed in the agreement were reasonable and necessary for the operation of the Ingleburn Mill.

Kimberly-Clark 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