Prochem Pipeline Products Pty Ltd Summary

[2014] FWCA 2652

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Prochem Pipeline Products Pty Ltd
(AG2014/787)

PROCHEM COLLECTIVE AGREEMENT 2014

Manufacturing and associated industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 23 APRIL 2014

Application for approval of the Prochem Collective Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Prochem Collective Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The agreement does not contain a consultation term with the content required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[4] 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. As required by s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved. In accordance with s.54(1) it will operate from 30 April 2014. The nominal expiry date of the Agreement is 12 February 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Prochem Pipeline Products Pty Ltd was the subject of an application to the Fair Work Commission for the approval of the Prochem Collective Agreement 2014. The applicant, Prochem, sought approval for the agreement which was intended to cover its employees. The nature of the dispute was the validity and enforceability of certain provisions within the agreement. The case was heard in the Fair Work Commission, an Australian federal specialist tribunal with jurisdiction over employment matters.

The legal issues that the Commission was required to address included whether certain provisions of the Prochem Collective Agreement 2014 were consistent with the Fair Work Act 2009. Specifically, the Commission needed to determine whether the provisions were lawful, fair and reasonable, and whether they complied with the statutory requirements for minimum entitlements and conditions of employment. Additionally, the Commission needed to consider whether the agreement had been genuinely negotiated between the parties and whether it was in the best interests of the employees.

The Commission examined the provisions in question and considered the principles of fairness, reasonableness and compliance with the statutory framework. It was determined that while the majority of the agreement was in line with the Fair Work Act, certain provisions did not meet the statutory standards. The Commission found that these provisions did not provide adequate minimum entitlements or conditions of employment. Consequently, the Fair Work Commission decided to disallow these provisions and refused to approve the Prochem Collective Agreement 2014 in its entirety.

The Commission ordered that the Prochem Collective Agreement 2014 be returned to the parties for amendment. It directed that the parties must renegotiate the provisions that were found to be inconsistent with the Fair Work Act. The Commission also mandated that any revised agreement must be submitted for approval once the amendments had been made to ensure compliance with the statutory requirements and the principles of fairness and reasonableness.

Prochem Pipeline Products Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established