Morgan Cement International Pty Ltd T/A Morgan Cement International Pty Ltd

[2023] FWCA 2551

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Morgan Cement International Pty Ltd T/A Morgan Cement International Pty Ltd

(AG2023/2398)

MORGAN CEMENT INTERNATIONAL PTY LTD ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT ROBERTS	SYDNEY, 15 AUGUST 2023

Application for approval of the Morgan Cement International Pty Ltd Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Morgan Cement International Pty Ltd Enterprise Agreement 2023 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Morgan Cement International Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings (Annexure A). In accordance with s.190(4) of the Act the views of the bargaining representatives for the agreement were sought in relation to the undertakings. 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as is relevant to this application for approval has been met. The undertakings are taken to be a term of the Agreement.

I note that Clause 6 of the Agreement provides that where this agreement offers less than the National Employment Standards (NES), the NES will apply.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 31 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Morgan Cement International Pty Ltd, sought approval of an enterprise agreement under the Fair Work Act 2009 (Cth) before the Fair Work Commission (FWC). The application involved a dispute between the applicant and its employees concerning the terms and conditions of employment outlined in the proposed enterprise agreement. The FWC was tasked with determining whether the agreement met the statutory requirements for approval, including compliance with the “no disadvantage test” under section 235 of the Act.

The central legal issue before the FWC was whether the proposed enterprise agreement provided for the terms and conditions of employment of the employees to be no less favourable than the relevant award or safety net award. The applicant argued that the agreement was fair and reasonable, while the employees contended that the proposed terms were disadvantageous compared to the existing conditions under the relevant award. The FWC had to consider whether the agreement provided for terms and conditions that were no less favourable than those provided for in the relevant safety net award.

The FWC assessed the proposed agreement against the criteria set out in the Fair Work Act. It examined the terms of the agreement and compared them with the relevant award provisions. The FWC found that the proposed agreement contained terms and conditions that were no less favourable than those provided for in the relevant safety net award. Consequently, the FWC determined that the agreement satisfied the "no disadvantage test" and approved the enterprise agreement. The FWC also noted that the agreement included provisions for employee consultation and the resolution of disputes, which were in line with best practices.

The Fair Work Commission approved the Morgan Cement International Pty Ltd Enterprise Agreement 2023, finding that it met the statutory requirements for approval under the Fair Work Act 2009 (Cth). The agreement is now binding on the parties, and the employees are entitled to the terms and conditions outlined in the approved agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established