Latrobe Valley Insulations Pty Ltd

[2013] FWCA 9875

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Latrobe Valley Insulations Pty Ltd
(AG2013/11875)

LATROBE VALLEY INSULATIONS & CFMEU MECHANICAL POWER INDUSTRY ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 16 DECEMBER 2013

Application for approval of the Latrobe Valley Insulations & CFMEU Mechanical Power Industry Enterprise Agreement 2012.

[1] An application has been made for approval of an enterprise agreement known as the Latrobe Valley Insulations & CFMEU Mechanical Power Industry Enterprise Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Latrobe Valley Insulations Pty Ltd. The agreement is a greenfields agreement.

[2] I am satisfied that each of the requirements of ss186 and 187 as are relevant to this application for approval have been met.

[3] I am satisfied that the Construction, Forestry, Mining and Energy Union (CFMEU), the employee organisation to be covered by the agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 23 December 2013. The nominal expiry date of the Agreement is 31 March 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Latrobe Valley Insulations Pty Ltd sought approval of an enterprise agreement under the Fair Work Act 2009. The applicant, a company operating in the insulation industry, entered into an enterprise agreement with the Construction, Forestry, Mining and Energy Union (CFMEU). The CFMEU is a registered trade union representing workers in various industries, including mechanical power. The Fair Work Commission, the body responsible for approving enterprise agreements, received the application for approval of the Latrobe Valley Insulations & CFMEU Mechanical Power Industry Enterprise Agreement 2012.

The primary legal issue before the Commission was whether the enterprise agreement complied with the requirements of the Fair Work Act. Specifically, the Commission needed to determine if the agreement had been made in accordance with the provisions of the Act and if it satisfied the "better off overall test" (BOOT). This test ensures that employees are not disadvantaged by the terms of the agreement compared to their previous entitlements under a relevant award or registered agreement. The Commission also had to assess if the agreement met the procedural requirements, including whether the agreement was genuinely negotiated and if the parties had followed the necessary processes.

The Commission found that the enterprise agreement was compliant with the Fair Work Act. It determined that the agreement was genuinely negotiated and met the procedural requirements. The Commission also concluded that the agreement satisfied the BOOT, ensuring that employees were not worse off than they would have been under a relevant award or registered agreement. Given these findings, the Commission approved the Latrobe Valley Insulations & CFMEU Mechanical Power Industry Enterprise Agreement 2012, allowing it to come into effect.

The Fair Work Commission approved the Latrobe Valley Insulations & CFMEU Mechanical Power Industry Enterprise Agreement 2012, effective from the date of the decision. The Commission's approval was based on its determination that the agreement met all legal requirements, including the BOOT, and that the necessary negotiation and procedural processes had been followed. This decision allows the agreement to regulate the employment terms and conditions of the employees covered by it.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established