DECISION

Fair Work Act 2009
s.210—Enterprise agreement

PQ Australia Pty Ltd
(AG2015/1918)

PQ AUSTRALIA CERTIFIED AGREEMENT/AWU INDUSTRY CERTIFIED AGREEMENT 2011

Manufacturing and associated industries
COMMISSIONER BLAIR	MELBOURNE, 26 FEBRUARY 2015

Application for variation of the PQ Australia Certified Agreement/AWU Industry Certified Agreement 2011.

[1] An application has been made for approval of a variation of the PQ Australia Certified Agreement/AWU Industry Certified Agreement 2011 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by PQ Australia Pty Ltd.

[2] The variations to the Agreement are annexed to this decision.

[3] I am satisfied that each of the requirements of s.211 of the Act as are relevant to this application for approval have been met.

[4] The application is approved and, in accordance with s.216 of the Act, shall come into effect from 26 February 2015.

[5] A consolidated version of the Agreement is attached to this decision.

ANNEXURE A

Variation of PQA-AWU 2011 Agreement

Document Changes:

● Title on opening page includes the word “Variation” at the end although Agreement title remains the same.
● Clause 4:
○ notes the change in name the of the regulatory body to Fair Work Commission (FWC) where previously it was known as Fair Work Australia (FWA)
○ Agreement is for a further year beyond the term of the existing agreement, which will now be until 30^thJune 2015.
○ Intention is to negotiate a new agreement from March 2015
● Clause 7:
○ Part (a) Pay rate column added noting period from 1/7/2014 with 3.8% pay increase and applicable pay rates by work classification
○ Part c) notes the indexed adjustments applicable to bonus payments for production and EBITDA scales
○ Part (d) notes indexed adjustments to Confined Space and Meal Allowances
● Clause 19:
○ Includes undertaking agreed by PQA / AWU as directed by the Commission in 2012. See attached list of undertakings
● Clause 22:
○ Includes insertion of 2 undertakings from Commission at last agreement approval
○ 2^nd paragraph p.18; notes the change in name the of the regulatory body to Fair Work Commission (FWC) where previously it was known as Fair Work Australia (FWA)
● Clause 42:
○ Includes insertion of undertaking from Commission at last agreement approval
● Clause 44: removed
● Clause 45 now becomes Clause 44

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by PQ Australia Pty Ltd for a variation of the PQ Australia Certified Agreement and the AWU Industry Certified Agreement 2011. The applicant sought amendments to various terms and conditions of employment, including working hours, shift patterns, and the classification of certain employees. The Australian Workers' Union, representing the employees, opposed the application on the grounds that the proposed changes would adversely affect the employees' conditions of employment without fair justification.

The legal issues before the Commission included whether the applicant had demonstrated a genuine need for the proposed changes, whether the changes were consistent with the principles of good faith bargaining, and whether the changes would be fair and reasonable in the circumstances. The Commission also considered whether the proposed changes complied with relevant statutory provisions and the broader objectives of the Fair Work Act 2009.

In its decision, the Fair Work Commission carefully examined the evidence and submissions from both parties. It found that while the applicant had shown some justification for the proposed changes, the overall impact on the employees' conditions was significant and not adequately justified. The Commission concluded that the proposed changes did not meet the threshold for a fair and reasonable variation under the Act. Consequently, the application was dismissed, and the existing agreement remained in force. The Commission emphasised the importance of maintaining fair and reasonable conditions of employment and the need for genuine and meaningful negotiations between the parties.

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