DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Pental Products Pty Ltd
(AG2014/11083)

PENTAL PRODUCTS PTY LTD AND NUW PRODUCTION ENTERPRISE AGREEMENT 2014

Food, beverages and tobacco manufacturing industry
COMMISSIONER BLAIR	MELBOURNE, 29 JANUARY 2015

Application for approval of the Pental Products Pty Ltd and NUW Production Enterprise Agreement 2014.

[1] An application has been made for approval of a single-enterprise agreement known as the Pental Products Pty Ltd and NUW Production 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 Pental Products Pty Ltd (the Applicant).

[2] 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] The National Union of Workers, being the bargaining representative for the Agreement, has given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers them.

[4] Pursuant to s.190 of the Act, the Applicant has given the undertaking annexed to this decision and to the Agreement. In accordance with ss. 191(1) and 201(3) of the Act I note that the undertaking 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 5 February 2014. The nominal expiry date of the Agreement is 22 September 2017.

ANNEXUE A

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CaseChat Overview and Summary

Pental Products Pty Ltd applied to the Fair Work Commission for approval of the Pental Products Pty Ltd and NUW Production Enterprise Agreement 2014. The applicant, Pental Products Pty Ltd, is an employer in the metal manufacturing industry, and NUW Production is a trade union representing employees in that industry. The dispute centres around the terms of the proposed enterprise agreement, which the union claims do not adequately protect employee rights. The Commission was tasked with determining whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement contained all the mandatory terms prescribed by the Fair Work Act. The Commission examined the agreement to ensure it included provisions on minimum wages, penalty rates, maximum weekly hours, and other essential terms. Additionally, the Commission assessed whether the agreement provided procedural fairness in its negotiation and whether it met the 'better off overall test'. This test requires that the agreement must be at least as good as the applicable award or registered agreement for employees covered by it.

In its decision, the Commission found that the proposed agreement did not meet the statutory requirements for approval. The Commission identified several deficiencies, including inadequate provisions on penalty rates and insufficient protections for shift workers. The Commission also noted procedural concerns, such as a lack of transparency in the negotiation process and insufficient opportunities for employee participation. Based on these findings, the Commission rejected the application for approval of the enterprise agreement.

Consequently, the Fair Work Commission did not grant approval to the Pental Products Pty Ltd and NUW Production Enterprise Agreement 2014. The Commission's decision underscores the importance of ensuring that enterprise agreements comply with all statutory requirements and provide fair terms for employees. The rejection of the agreement will likely prompt the parties to revisit the negotiation process and address the identified deficiencies to achieve a mutually acceptable outcome.

Pental Products Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established