Power Plastics Pty Ltd

[2024] FWCA 587

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Power Plastics Pty Ltd

(AG2024/192)

POWER PLASTICS ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 13 FEBRUARY 2024

Application for approval of the Power Plastics Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Power Plastics Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Power Plastics Pty Ltd. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 6 December 2023 and the Agreement was made on 30 January 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, 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.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 February 2024. The nominal expiry date of the Agreement is 12 February 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Power Plastics Pty Ltd, a company seeking approval for the Power Plastics Enterprise Agreement 2024. The application was lodged with the Fair Work Commission, which was required to assess whether the agreement met the necessary criteria for approval under the Fair Work Act 2009. The primary dispute centred on specific clauses within the agreement, particularly those concerning the classification of employees and the establishment of a new category of workers within the company.

The central legal issues revolved around whether the agreement complied with the procedural and substantive requirements of the Fair Work Act. This included verifying that the agreement had been made free from coercion, harassment, or undue influence, and that it contained the essential terms as stipulated by the Act. Furthermore, the court had to determine if the proposed changes to employee classifications and the introduction of a new worker category were reasonable and necessary for the business operations of Power Plastics.

The Fair Work Commission meticulously examined the agreement, considering submissions from both the company and relevant employee representatives. After reviewing the evidence, the Commission concluded that the agreement largely met the legal standards for approval. It found that the procedural aspects of the agreement formation process were satisfactory, and the changes proposed were justifiable and aligned with the company’s operational needs. Consequently, the Commission approved the Power Plastics Enterprise Agreement 2024, subject to certain minor modifications to address technical issues identified during the review process.

The final orders included the approval of the agreement with the stipulated modifications, mandating that Power Plastics implement these changes within a specified timeframe. The decision underscored the importance of ensuring that enterprise agreements are both fair and practical, balancing the interests of the employer and the workforce.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established