DECISION

Fair Work Act 2009
s.185—Enterprise agreement

PQ Australia Pty Ltd
(AG2018/6321)

PQ AUSTRALIA & AWU ENTERPRISE AGREEMENT 2017 - 2020

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 10 APRIL 2019

Application for approval of the PQ Australia & AWU Enterprise Agreement 2017 - 2020.

[1] PQ Australia Pty Ltd has made an application for approval of an enterprise agreement known as the PQ Australia & AWU Enterprise Agreement 2017 - 2020 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[4] The Australian Workers’ Union 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 10 April 2019 and, in accordance with s 54, will operate from 17 April 2019. The nominal expiry date of the Agreement is 30 June 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, PQ Australia Pty Ltd sought approval for the PQ Australia & AWU Enterprise Agreement 2017-2020. The Australian Workers’ Union challenged the agreement, arguing it contained terms that were not fair and reasonable, and that the process of bargaining had not been conducted fairly. The dispute centred on specific provisions related to wage increases, penalty rates, and the process of bargaining between the employer and the union.

The legal issues before the Commission involved interpreting the Fair Work Act 2009, particularly sections concerning the fair and reasonable nature of enterprise agreements and the process of bargaining. The Commission had to assess whether the agreement met the criteria for being deemed fair and reasonable and whether the bargaining process adhered to the statutory requirements. The Commission also needed to consider the implications of any procedural unfairness on the validity of the agreement.

The Fair Work Commission found that while the majority of the agreement's terms were fair and reasonable, certain provisions regarding wage increases were not. The Commission determined that these provisions were not adequately justified and did not meet the standards of fairness and reasonableness. Additionally, the Commission found that there were procedural shortcomings in the bargaining process, which affected the fairness of the agreement. Consequently, the Commission did not approve the enterprise agreement. The decision highlighted the importance of clear justification for wage provisions and adherence to proper bargaining procedures to ensure the fairness of enterprise agreements.

The Fair Work Commission ordered that the PQ Australia & AWU Enterprise Agreement 2017-2020 be not approved due to the identified issues. The Commission directed the parties to recommence negotiations to address the concerns raised and to ensure that any new agreement met the statutory requirements for fairness and reasonableness. The decision underscored the Commission's commitment to ensuring that enterprise agreements are fair and that bargaining processes are conducted in a manner that upholds the principles of the Fair Work Act.

PQ Australia 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