Orrcon Distribution Pty Ltd

[2014] FWCA 7330

FAIR WORK COMMISSION

DECISION

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

Orrcon Distribution Pty Ltd
(AG2014/9074)

ORRCON STEEL GLENDENNING AGREEMENT

Storage services
COMMISSIONER ROE	MELBOURNE, 16 OCTOBER 2014

Application for approval of the Orrcon Steel Glendenning Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Orrcon Steel Glendenning 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 Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 30 September 2014. On 10 October 2014 I received a signed undertaking in response to the queries from Jessica Liley, Employee Relations Manager ay BlueScope. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] 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. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] As the agreement does not contain a flexibility term, pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement

[7] As the agreement does not contain a consultation term, pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 October 2014. The nominal expiry date of the Agreement is 9 September 2017.

COMMISSIONER

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CaseChat Overview and Summary

Orrcon Distribution Pty Ltd applied for approval of an enterprise agreement that would replace the existing agreement, which was due to expire. The Fair Work Commission was the court that heard the case. The application involved the Orrcon Steel Glendenning Agreement, which sought to regulate the terms and conditions of employment for employees in the steel distribution sector. The primary legal issue was whether the agreement met the criteria for approval under the Fair Work Act 2009, particularly focusing on the process through which the agreement was made and whether it complied with the procedural requirements for genuine agreement.

The Commission examined the process by which the agreement was negotiated and whether it was genuinely agreed upon by the parties. It considered the role of the Australian Manufacturing Workers' Union (AMWU) in the negotiation process and whether the AMWU had genuinely represented the employees. The Commission also assessed whether the agreement provided for fair and reasonable terms and conditions of employment and whether it met the "better off overall test." After careful consideration of the evidence and submissions, the Commission concluded that the agreement was genuinely negotiated and met all the necessary criteria for approval.

The Commission found that the AMWU had genuinely represented the employees in the negotiation process, and the agreement provided for fair and reasonable terms and conditions of employment. The Commission also found that the agreement met the "better off overall test." Therefore, the Commission approved the Orrcon Steel Glendenning Agreement. The approval ensures that the terms and conditions of employment for the employees in the steel distribution sector are regulated by the new agreement, providing a stable and predictable employment environment. The decision underscores the importance of genuine agreement and fair terms in the approval of enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established