Manildra Energy Australia Pty Ltd

[2023] FWCA 1830

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Manildra Energy Australia Pty Ltd

(AG2023/1919)

MANILDRA GROUP (ALTONA) ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 22 JUNE 2023

Application for approval of the Manildra Group (Altona) Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Manildra Group (Altona) Enterprise Agreement 2023 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on 1 June 2023.

I am satisfied that each of the requirements of sections 186, 187 and 188 of the Act as are relevant to this application for approval have been met.

The Australian Workers’ Union, being a bargaining representative for the Agreement, has 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 organisation.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 29 June 2023. The nominal expiry date of the Agreement is 30 June 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Manildra Energy Australia Pty Ltd, the applicant, sought approval of the Manildra Group (Altona) Enterprise Agreement 2023 from the Fair Work Commission. The agreement was proposed as a means to govern the employment terms and conditions of the company's employees, particularly those at the Altona facility. The Commission was required to determine whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed enterprise agreement complied with the procedural and substantive requirements set out in the Act. Procedurally, the Commission needed to ascertain whether the agreement had been fairly negotiated and whether the necessary steps had been taken to secure employee support. Substantively, the Commission had to ensure that the agreement did not undermine the safety net of minimum entitlements and did not contain provisions that were contrary to the public interest.

In deliberating on these issues, the Commission considered the evidence provided by both the applicant and the objectors to the agreement. It examined the negotiation process, the level of employee engagement, and the contents of the agreement itself. The Commission found that the agreement had been fairly negotiated and that the requisite steps had been taken to secure employee support. Furthermore, the agreement did not undermine the safety net of minimum entitlements and did not contain any provisions that were contrary to the public interest. Therefore, the Commission approved the Manildra Group (Altona) Enterprise Agreement 2023.

The Fair Work Commission approved the Manildra Group (Altona) Enterprise Agreement 2023, thereby establishing it as a legally binding document governing the employment terms and conditions of the employees at the Altona facility. The decision underscores the importance of fair negotiation processes and the need for agreements to adhere to both procedural and substantive legal requirements. This ruling sets a precedent for similar agreements in the industry and reinforces the Commission's role in ensuring that enterprise agreements are fair, reasonable, and compliant with the relevant legislation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established