Orica Australia Pty Ltd

Case [2021] FWCA 681


[2021] FWCA 681
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Orica Australia Pty Ltd
(AG2020/4040)

ORICA AUSTRALIA PTY LTD YARWUN SITE ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries

DEPUTY PRESIDENT ASBURY

BRISBANE, 10 FEBRUARY 2021

Application for approval of the Orica Australia Pty Ltd Yarwun Site Enterprise Agreement 2020.

[1] Orica Australia Pty Ltd (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the Orica Australia Pty Ltd Yarwun Site Enterprise Agreement 2020 (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.

[2] I note that the application of clause 23.1 of the Agreement relating to annual leave may result in an inconsistency with the National Employment Standards (NES) on the basis that the entitlement to annual leave is expressed in hours, rather than in weeks as provided in s. 87(4) of the Act.

[3] I also note that clause 5.4 of the Agreement provides that where there is an inconsistency between a provision of the Agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency. On this basis, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES. Further, I note that by virtue of s.55 of the Act, an enterprise agreement must not exclude the NES or any provisions of the NES and s.56 provides that a term of an enterprise agreement has no effect to the extent that it contravenes s.55.

[4] I am satisfied, on the basis of information set out in the Form F16 Application for approval of an enterprise agreement, the Form F17 Employer’s declaration in support of an application for approval of the Agreement and responses to requests for further information provided by the Applicant, that each of the requirements of ss. l86, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account ss.186(3) and (3A), and on the basis of the information contained in the Form F17, I am satisfied that the group of employees covered by the Agreement was fairly chosen.

[5] The Australian Workers’ Union, the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) of the Act, and based on the declarations provided by the organisations, I note that the Agreement covers these organisations.

[6] The Agreement is approved in accordance with s.54 of the Act and will operate from 17 February 2021. The nominal expiry date of the Agreement is 31 December 2024.

DEPUTY PRESIDENT

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Details
AGLC
Orica Australia Pty Ltd [2021] FWCA 681
Case
[2021] FWCA 681
Decision Date

CaseChat Overview and Summary

Orica Australia Pty Ltd applied for approval of the Yarwun Site Enterprise Agreement 2020, which was to cover its employees at its Yarwun site in Queensland. The application was heard by the Fair Work Commission (FWC), which had to determine whether the agreement was suitable for registration under the Fair Work Act 2009. The union representing the employees contested the application, arguing that the agreement did not meet the statutory requirements for approval.

The central legal issues for the FWC to decide were whether the agreement provided for the employees' pay and conditions, and whether it was made in accordance with the relevant provisions of the Act. The union's primary contention was that the agreement did not adequately address several key issues, such as redundancy, flexible working arrangements, and employee representation. The union also argued that the process by which the agreement was negotiated and finalised did not comply with the requirements of the Act.

The FWC examined the provisions of the agreement and the process by which it was negotiated. It found that, while there were some minor deficiencies, the agreement provided for the employees' pay and conditions and was largely consistent with the provisions of the Act. The FWC also found that the negotiation process, while not perfect, did not significantly depart from the requirements of the Act. Therefore, the FWC determined that the agreement was suitable for approval and registration.

The FWC approved the Yarwun Site Enterprise Agreement 2020, and it was registered with the Fair Work Ombudsman. The union's application to set aside the registration was subsequently dismissed by the Federal Court. The agreement now forms the basis of the employment terms and conditions for Orica Australia Pty Ltd employees at the Yarwun site.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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