DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Orrcon Distribution Pty Ltd
(AG2016/6775)

ORRCON STEEL BENDIGO ENTERPRISE AGREEMENT 2016-2019

Storage services
COMMISSIONER LEE	SYDNEY, 16 DECEMBER 2016

Application for approval of the Orrcon Steel Bendigo Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Orrcon Steel Bendigo Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Orrcon Distribution Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] Subject to the undertakings 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 December 2016. The nominal expiry date of the Agreement is 30 September 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Orrcon Distribution Pty Ltd applied to the Fair Work Commission for approval of the Orrcon Steel Bendigo Enterprise Agreement 2016-2019. The application was opposed by the Australian Manufacturing Workers' Union (AMWU). The parties had been negotiating a new enterprise agreement but could not reach a resolution. The dispute was brought before the Commission to determine whether the proposed agreement met the requirements of the Fair Work Act 2009.

The central legal issue was whether the agreement was a genuine enterprise agreement, as defined by the Fair Work Act. The AMWU argued that the agreement did not meet the criteria for genuineness because it did not contain the appropriate protections and benefits for employees. The key points of contention included the provisions related to employee entitlements, such as leave and penalty rates, and the agreement's compliance with the "better-off-overall test." This test required that employees be no worse off financially under the new agreement compared to their previous conditions.

The Commission examined the evidence and submissions from both parties, focusing on whether the proposed agreement provided fair and reasonable terms for the employees. The Commission concluded that the agreement met the criteria for genuineness as it included adequate protections and benefits for employees and ensured they were not worse off overall. The Commission approved the agreement, finding that it was a genuine enterprise agreement under the Fair Work Act.

The Commission's decision was that the Orrcon Steel Bendigo Enterprise Agreement 2016-2019 was approved as a genuine enterprise agreement. The final orders included the registration of the agreement, which would then govern the employment conditions of the employees at the Bendigo site for the period 2016-2019. The AMWU's opposition to the approval was dismissed.

Orrcon Distribution Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established