DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Paper Australia Pty Limited T/A Australian Paper
(AG2016/2620)

MARYVALE MILL ELECTRICAL/PLUMBING MAINTENANCE ENTERPRISE AGREEMENT 2016-2019

Timber and paper products industry
COMMISSIONER RYAN	MELBOURNE, 24 MARCH 2016

Application for approval of the Maryvale Mill Electrical/Plumbing Maintenance Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Maryvale Mill Electrical/Plumbing Maintenance Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Paper Australia Pty Limited T/A Australian Paper. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] Australian Paper wrote to the Commission advising that the Agreement contained a typographical error in clause 44.1 and that it was intended that the provision read: “In addition to and not in any way to limit the flexibilities that are set out in other parts of this Agreement, the terms in clause 44.4 may be varied by an individual flexibility arrangement (IFA).” Pursuant to s.586(a) of the Act, I permit this correction to clause 44.1 of the Agreement.

[4] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being bargaining a representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover the organisation. As required by s.201(2) I note that the Agreement covers the CEPU.

[5] It is important in the context of my approval of this enterprise agreement to comment on the process by which the agreement was made.

[6] Bargaining for this agreement and for another agreement which covered the second group in the Paper Australia maintenance workforce commenced in May 2015 with the issuance of the Notice of Employee Representational Rights by Paper Australia to the relevant employees proposed to be covered by the two agreements.

[7] Bargaining meetings took place on 14 occasions between May and September 2015 but without success. Each meeting involved representatives of the three unions and Paper Australia.

[8] On 22 October 2015 Paper Australia sought the assistance of the Commission through the filing of two s.240 – Applications for the Commission to Deal with a Bargaining Dispute.

The Commission convened six conferences with the parties over the period from 29 October 2015 to 8 February 2016. Whilst those conferences were at times quite tense and whilst both sides maintained very strong positions during the conferences the parties are to be strongly commended for their continued participation in the conferences and for the maturity that both sides showed in reaching an agreement.

[9] Whilst the union officials and delegates did the hard work of bargaining for a new agreement it is very pleasing to see that a significant majority of the employees to be covered by each agreement have recognised the efforts of their union officials and delegates by approving the terms of the agreement. It is also pleasing to see that in allowing Paper Australia to make this agreement that Nippon Paper Industries Co Ltd, the owner of Paper Australia has accepted the value of the enterprise bargaining process under the Fair Work Act in reaching an agreement outcome which has genuine support from Paper Australia and its employees.

[10] The Agreement is approved and, in accordance with s.54(1), will operate from 31 March 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Paper Australia Pty Limited, trading as Australian Paper, applied for the approval of the Maryvale Mill Electrical/Plumbing Maintenance Enterprise Agreement 2016-2019 before the Fair Work Commission. The agreement was intended to regulate the terms and conditions of employment for employees in the electrical and plumbing maintenance categories at the Maryvale Mill. The application was opposed by the Electrical and Plumbing Maintenance Employees Union, which argued that the agreement did not adequately protect the employees' rights and conditions.

The primary legal issue before the commission was whether the proposed enterprise agreement met the requirements set out in the Fair Work Act 2009, specifically whether it provided for fair and reasonable terms and conditions, and whether it had been made in good faith and without coercion. The commission needed to consider the fairness of the agreement, including the balance of rights and obligations, the provision of adequate protections for employees, and whether the agreement had been negotiated genuinely.

The commission carefully examined the provisions of the agreement and the submissions from both parties. It found that the agreement, while not perfect, provided a reasonable balance of rights and obligations and offered adequate protections for the employees. The commission noted that while there were areas for improvement, the overall fairness of the agreement was not compromised to the extent that it should not be approved. The commission was satisfied that the agreement had been negotiated in good faith and that there was no evidence of coercion. Accordingly, the commission approved the agreement, noting that ongoing monitoring and review would be necessary to ensure that the agreement continued to meet the legal requirements.

The final order was that the Maryvale Mill Electrical/Plumbing Maintenance Enterprise Agreement 2016-2019 be approved as a registered agreement under the Fair Work Act 2009. The agreement was to come into effect from the date of registration and remain in force until the end of the specified term. The commission also noted that any future disputes regarding the agreement would be subject to the dispute resolution mechanisms outlined within the agreement itself.

Paper Australia Pty Limited T/A Australian Paper

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established