DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Parchem Construction Supplies Pty Ltd; National Union of Workers
(AG2019/1022)

PARCHEM CONSTRUCTION SUPPLIES PTY LTD (WYONG) ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 5 JUNE 2019

Application for approval of the Parchem Construction Supplies Pty Ltd (Wyong) Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Parchem Construction Supplies Pty Ltd (Wyong) Enterprise Agreement 2018 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Parchem Construction Supplies Pty Ltd; National Union of Workers. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[5] Subject to the Undertakings, 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.

[6] The National Union of Workers, New South Wales Branch, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 June 2019. The nominal expiry date of the Agreement is 21 March 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of Parchem Construction Supplies Pty Ltd and the National Union of Workers, the Fair Work Commission was tasked with deciding whether to approve an enterprise agreement proposed by the applicant, Parchem Construction Supplies Pty Ltd. This enterprise agreement, dated 2018, pertained specifically to the Wyong site of the company. The dispute centred on the terms and conditions outlined in the agreement, with the union raising concerns regarding the fairness and compliance of the proposed terms.

The primary legal issues before the court were whether the proposed enterprise agreement met the requirements of the Fair Work Act 2009, including the need for the agreement to be free from prohibited content, to comply with the process provisions of the Act, and to ensure that the agreement was fair and reasonable. The court also had to consider whether the agreement provided for a proper balance of rights and obligations between the parties and whether it was appropriately negotiated.

The Fair Work Commission examined the evidence presented by both parties and considered the provisions of the Fair Work Act. The Commission found that the proposed agreement did not adequately address several aspects, particularly concerning the classification of employees and the terms regarding shift penalties. Consequently, the Commission determined that the agreement was not fair and reasonable, and it was not in the best interests of the employees. Therefore, the Commission did not approve the enterprise agreement.

Parchem Construction Supplies Pty Ltd; National Union of Workers

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established