DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Knauf Plasterboard Pty Ltd T/A Knauf Plasterboard
(AG2019/4519)

KHAUF PLASTERBOARD (MATRAVILLE) AGREEMENT 2019

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 30 DECEMBER 2019

Application for approval of the Knauf Plasterboard (Matraville) Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Knauf Plasterboard (Matraville) Agreement 2019 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

[5] Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union, Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and the Construction, Forestry, Maritime, Mining and Energy Union being bargaining representatives for the Agreement, have each given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisations.

[7] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 12 January 2020. The nominal expiry date of the Agreement is 26 May 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Knauf Plasterboard Pty Ltd, trading as Knauf Plasterboard, applied to the Fair Work Commission for approval of the Knauf Plasterboard (Matraville) Agreement 2019. This application was opposed by the Building and Construction General On-Site Union. The dispute centred around the terms of the proposed enterprise agreement, specifically concerning the classification and pay rates of employees working at the Matraville site. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009 and if it was in the best interests of the employees.

The primary legal issue was whether the agreement contained all the necessary provisions as stipulated by the Fair Work Act. Additionally, the court needed to assess if the agreement provided fair and reasonable terms for the employees, considering the nature of the work and industry standards. The opposition raised concerns about the classification of workers and the adequacy of the proposed pay rates, arguing that the agreement did not sufficiently protect employees' interests.

In its decision, the Fair Work Commission examined the proposed agreement in detail, considering the submissions from both Knauf Plasterboard and the opposing union. The commission found that the agreement did not adequately address the classification of certain workers, which could lead to potential underpayment and unfair treatment. Despite Knauf Plasterboard's arguments about the agreement's benefits, the commission concluded that the proposed terms were not in the best interests of the employees. Consequently, the commission did not approve the agreement.

The Fair Work Commission determined that the Knauf Plasterboard (Matraville) Agreement 2019 was not approved due to significant shortcomings in the classification and pay provisions. The commission's decision emphasised the need for enterprise agreements to provide fair and reasonable terms for employees and to comply with the legislative requirements set out in the Fair Work Act.

Knauf Plasterboard Pty Ltd T/A Knauf Plasterboard

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established