DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Pacific NonWovens (Australia) Pty Ltd
(AG2014/10870)

PACIFIC NONWOVENS BIBRA LAKE SITE ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
DEPUTY PRESIDENT SMITH	MELBOURNE, 9 FEBRUARY 2015

Application for approval of the Pacific NonWovens Bibra Lake Site Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Pacific NonWovens Bibra Lake Site Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Pacific NonWovens (Australia) 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 Pacific NonWovens (Australia) 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 8 February 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

CaseChat Overview and Summary

Pacific NonWovens (Australia) Pty Ltd, an employer, sought approval of an enterprise agreement with its employees, who were represented by the National Tertiary Education Industry Union. The application was made to the Fair Work Commission, which had jurisdiction under the Fair Work Act 2009. The primary dispute was whether the enterprise agreement complied with the procedural and substantive requirements of the Act.

The legal issues before the Commission included whether the agreement had been genuinely bargained, if it met the "better off overall test", and if it contained all the mandatory terms required by the legislation. A particular point of contention was whether certain clauses relating to redundancy and shift penalties were lawful and procedurally sound. The Commission had to determine if the employer had genuinely sought to negotiate in good faith and if the employees had been adequately represented and informed during the bargaining process.

In assessing the application, the Commission examined the evidence provided by both parties, including the negotiation records, communication between the employer and the union, and the final terms of the agreement. The Commission found that the agreement had been genuinely bargained and met the better off overall test. It also held that the redundancy and shift penalty clauses were lawful, as they did not contravene any provisions of the Act. The Commission concluded that the application should be approved, as all mandatory terms were included and the agreement was in compliance with the legislative requirements.

The Fair Work Commission approved the Pacific NonWovens Bibra Lake Site Enterprise Agreement 2014, determining it was fairly and genuinely negotiated and met the statutory criteria. The Commission found no procedural defects and that the agreement was in the best interests of the employees.

Pacific NonWovens (Australia) 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