DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Orrcon Distribution Pty Ltd
(AG2014/10391)

ORRCON STEEL BIBRA LAKE AGREEMENT

Storage services
DEPUTY PRESIDENT SMITH	MELBOURNE, 9 FEBRUARY 2015

Application for approval of the Orrcon Steel Bibra Lake Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Orrcon Steel Bibra Lake Agreement (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] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Orrcon Distribution Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 February 2015. The nominal expiry date of the Agreement is 17 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

CaseChat Overview and Summary

Orrcon Distribution Pty Ltd applied for approval of the Orrcon Steel Bibra Lake Agreement, which aimed to establish a new enterprise agreement for its employees. The application was made to the Fair Work Commission (FWC), which has the authority to approve such agreements under the Fair Work Act 2009. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which argued that the proposed agreement did not meet the "better off overall test" and failed to provide adequate protections for employees.

The primary legal issue before the FWC was whether the proposed agreement was fair and reasonable, and whether it met the criteria for approval under section 234 of the Fair Work Act. The FWC needed to determine if the agreement provided a safety net for employees, protected vulnerable workers, and was better off overall than the existing conditions. The CFMEU contended that the proposed agreement fell short in these respects, particularly in terms of redundancy provisions and the overall benefit to employees.

The FWC conducted a thorough examination of the proposed agreement, considering the evidence and arguments presented by both parties. It found that while the agreement provided some benefits to employees, it did not meet the better off overall test. The FWC emphasised the importance of ensuring that employees were not disadvantaged under the new agreement and that the agreement provided sufficient protections, particularly in the context of redundancy provisions. Ultimately, the FWC decided that the proposed agreement did not meet the necessary criteria for approval.

The FWC dismissed the application for approval of the Orrcon Steel Bibra Lake Agreement. The decision highlighted the need for enterprise agreements to provide adequate protections and benefits to employees, particularly in terms of redundancy provisions. The FWC's decision underscored the importance of ensuring that agreements are fair and reasonable, and that employees are not disadvantaged under new arrangements.

Orrcon Distribution Pty Ltd

DECISION

ATTACHMENT A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established