DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

O-I Operations (Australia) Pty Ltd T/A O-I Operations
(AG2019/2611)

O-I SYDNEY (GLASSWORKERS) ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
DEPUTY PRESIDENT BULL	SYDNEY, 27 AUGUST 2019

Application for approval of the O-I Sydney (Glassworkers) Enterprise Agreement 2019.

[1] An application has been filed by O-I Operations (Australia) Pty Ltd T/A O-I Operations(the applicant) for the approval of an enterprise agreement known as the O-I Sydney (Glassworkers) Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement as per s.172(2) of the Act.

[2] Following issues being raised with the applicant by the Commission, the applicant provided an undertaking that the introductory rate for labour hire employees specified in clause 2.6.1 of the Agreement will only be applicable for a maximum of 38 hours.

[3] A copy of the undertaking is attached at the end of the Agreement. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial change to the Agreement. Pursuant to s.201(3) of the Act, I note that the undertaking is taken to be a term of the Agreement.

[4] Subject to the undertaking 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.

[5] The Australian Workers’ Union (AWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it and notes the undertaking is appropriate. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, O-I Operations (Australia) Pty Ltd trading as O-I Operations, sought approval of the O-I Sydney (Glassworkers) Enterprise Agreement 2019, which was negotiated with the relevant unions. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009. The unions argued that the agreement unfairly disadvantaged some employees, while the applicant contended that the agreement was fair and reasonable.

The central legal issue was whether the agreement contained terms that were not genuinely negotiated or that were unfair. The Commission needed to assess whether the agreement complied with the statutory requirements for approval, including whether it provided for minimum rates of pay, minimum leave entitlements, and other key employment conditions. Additionally, the Commission considered whether the agreement was free from coercion or undue influence and whether it contained any terms that were not genuinely negotiated.

The Commission examined the negotiation process and the terms of the agreement in detail. It found that the agreement was genuinely negotiated and that the terms were fair. The Commission noted that the applicant had provided evidence of the negotiation process and that the unions had not raised any specific concerns about the fairness of the agreement. The Commission also found that the agreement provided for minimum rates of pay, leave entitlements, and other key conditions that were not less favourable than the applicable award or registered agreement. The Commission concluded that the agreement met the criteria for approval under the Act.

The Fair Work Commission approved the O-I Sydney (Glassworkers) Enterprise Agreement 2019, subject to certain conditions. The Commission ordered that the agreement be registered and that it would operate from the date of registration. The applicant and the unions were directed to take all necessary steps to give effect to the agreement. The Commission also ordered that a copy of the approved agreement be published on the Fair Work Commission's website.

O-I Operations (Australia) Pty Ltd T/A O-I Operations

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established