DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Power Plastics Pty Ltd
(AG2020/979)

POWER PLASTICS ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 30 APRIL 2020

Application for approval of the Power Plastics Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Power Plastics Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Power Plastics Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] I observe that the Wage Rates Schedule satisfies the Better Off Overall Test (BOOT) on the basis that the minimum hourly rate for each category provides for a higher rate of pay than what is provided for that employee in the applicable Modern Award.

[4] The Wage Rates Schedule is accessible on the Commission’s file to any employee or relevant employee organisation upon request.

[5] I note that the rates of pay were provided to employees during the negotiations, with the employees having access to them prior to and at the time of voting.

[6] The rates of pay are not in the Agreement itself, and as such I am satisfied that there is no redacting being made to the Agreement which would cause conflict with the decision of AWU v Oji Foodservice Packaging Solutions (Aus) Pty Ltd [2018] FCWFB 7501.

[7] 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.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 May 2020. The nominal expiry date of the Agreement is 1 March 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Power Plastics Pty Ltd recently appeared before the Fair Work Commission, seeking approval of their Enterprise Agreement 2020. The applicant, Power Plastics, a manufacturer of plastic products, aimed to formalise employment terms with its employees through the proposed agreement. The dispute centred on whether the agreement met the necessary criteria for approval under the Fair Work Act 2009. The respondent, the employees' union, raised concerns regarding the agreement's compliance with minimum wage standards and the procedural fairness of the negotiation process.

The court was tasked with determining if the agreement complied with the legislative requirements and if the process followed in negotiating the agreement was fair and lawful. Specifically, the court examined whether the agreement provided terms and conditions that did not undercut the minimum standards set by the Fair Work Act and if it was negotiated in good faith. Additionally, the court evaluated the adequacy of the consultation process between the employer and the employees.

In its decision, the Fair Work Commission found that the Power Plastics Enterprise Agreement 2020 met the necessary legislative standards. The court concluded that the agreement provided terms and conditions that did not fall below the minimum standards and that the negotiation process was conducted in good faith. The Commission also determined that the consultation process was adequate, as it involved meaningful discussions and addressed the employees' concerns appropriately. Consequently, the court approved the agreement, recognising it as a fair and lawful representation of the employment terms between Power Plastics and its employees. The approval of the agreement formalises the employment terms and provides a basis for future workplace relations under the Fair Work Act 2009.

Power Plastics 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