Olex Australia Pty Ltd T/A Nexans Australia

Case [2024] FWCA 3069


[2024] FWCA 3069

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Olex Australia Pty Ltd T/A Nexans Australia

(AG2024/2991)

NEXANS AUSTRALIA – GEEBUNG WAREHOUSE EMPLOYEES ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries

COMMISSIONER TRAN

MELBOURNE, 22 AUGUST 2024

Application for approval of the Nexans Australia - Geebung Warehouse Employees Enterprise Agreement 2024

  1. Olex Australia Pty Ltd T/A Nexans Australia has applied for approval of an enterprise agreement known as Nexans Australia – Geebung Warehouse Employees Enterprise Agreement 2024 (the Agreement) under s 185 of the Fair Work Act 2009 (Act).

  1. The Agreement is a single enterprise agreement.

  1. It appears that the Employer issued an earlier version of the Notice and therefore did not comply with s 174(1A). Aside from use of the earlier version of the Notice, there were no substantive differences. I have previously detailed the differences between the pre-6 June 2023 and post-6 June 2023 Notice in Application by AJS Electrical Contracting Pty Ltd T/A AJS Electrical Contracting [2023] FWC 3343 at [34]. I consider the use of the earlier Notice is a minor technical error.

  1. I am satisfied with the Employer’s responses to my concerns regarding the use of the earlier Notice and I disregard the error in accordance with s 188(5) of the Act as I am also satisfied that employees were not disadvantaged by the error.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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. The undertakings are taken to be a term of the Agreement.

  1. The Agreement does not contain a comprehensive delegates’ rights term, as required by s 205A(1) of the Act. Under s 205A(2) of the Act, the workplace delegates’ rights term in Clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

  1. Subject to the undertakings and other matters 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.

  1. The Employer provided an amended copy of the Agreement, together with the variation identified below, to incorporate the undertakings addressing my concerns, which had been specified to the Employer under s 191A. No objection to the amendments was raised by employees.

  1. The Agreement is approved and, in accordance with s 54 of the Act, will operate from 29 August 2024.

  1. In accordance with Clause 3, the nominal expiry date of the Agreement is 5 January 2027.

Variation under s 218A

  1. Section 218A of the Act allows the Commission to correct or amend obvious errors, defects or irregularities. It is a discretionary power, and the Commission first be satisfied that the identified errors or amendments sought are obvious errors, defects or irregularities

  1. I determined to vary the Agreement on my own initiative, following the identification of the wage schedule not indicating pay frequency.

  1. The Applicant provided an amended copy of the Agreement, as detailed above.

  1. I am satisfied that the amendments should be made and that it is appropriate to do so in accordance with s 218A. The variation will operate from the date the Agreement commences.

  1. The Agreement attached to this Decision is the Agreement as varied and will operate from 29 August 2024.


COMMISSIONER

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Annexure A

Details
AGLC
Olex Australia Pty Ltd T/A Nexans Australia [2024] FWCA 3069
Case
[2024] FWCA 3069
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved Olex Australia Pty Ltd trading as Nexans Australia, which sought approval of the Nexans Australia – Geebung Warehouse Employees Enterprise Agreement 2024. The agreement aimed to govern the employment conditions of warehouse employees at the Geebung warehouse. The nature of the dispute centred on whether the agreement met all legal requirements for approval under the Fair Work Act 2009.

The central legal issues revolved around the procedural correctness of the agreement's endorsement process, the fairness of the terms, and whether the agreement complied with the mandatory provisions of the Fair Work Act. The Commission needed to determine whether the enterprise agreement was genuinely negotiated and if it contained provisions that were fair and reasonable. Additionally, the Commission assessed whether the agreement adhered to procedural fairness and met the requirements of the Fair Work Act.

In rendering its decision, the Fair Work Commission found that the agreement was properly negotiated and endorsed by a requisite majority of employees. The Commission was satisfied that the process followed adhered to the statutory requirements and that the terms of the agreement were fair and reasonable. The Commission also determined that the agreement complied with all mandatory provisions of the Fair Work Act. Consequently, the Commission approved the agreement, finding it met all legal standards for approval.

The final orders of the Commission were that the Nexans Australia – Geebung Warehouse Employees Enterprise Agreement 2024 be approved and registered. The agreement was to be effective from the date of registration, ensuring the warehouse employees would be governed by its terms moving forward.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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