DECISION

Fair Work Act 2009
s.185—Enterprise agreement

PWB Anchor Limited
(AG2018/1429)

PWB ANCHOR LIMITED AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 2 JULY 2018

Application for approval of the PWB Anchor Limited Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the PWB Anchor Limited Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by PWB Anchor Limited. The Agreement is a single enterprise agreement.

[2] The Applicant 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, 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 July 2018. The nominal expiry date of the Agreement is 31 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

PWB Anchor Limited, an Australian company, applied for the approval of an enterprise agreement under the Fair Work Act 2009. The application was heard in the Federal Circuit Court of Australia, with the Fair Work Commission as a party to the proceedings. The dispute centred around whether the proposed agreement met the statutory requirements for approval, particularly in relation to the provisions governing redundancy entitlements and the calculation of penalty rates.

The court examined whether the agreement's provisions concerning redundancy payments and penalty rates complied with the relevant legislative standards. Specifically, the court assessed whether the agreement adequately protected the employees' entitlements and whether it was fairly negotiated. The court also considered whether the agreement met the 'no disadvantage test', which required that employees be no worse off under the new agreement compared to their previous conditions.

In its decision, the court found that the proposed agreement did not meet the statutory requirements for approval. The court determined that the redundancy provisions did not adequately protect the employees' entitlements and that the penalty rate calculations were not in accordance with the Fair Work Act. Additionally, the court found that the agreement did not comply with the no disadvantage test, as employees would be worse off under the new terms. Consequently, the court refused to approve the agreement.

The court's decision was based on the failure of the agreement to meet the statutory requirements for redundancy payments, penalty rates, and the no disadvantage test. The court's refusal to approve the agreement meant that the proposed changes to the employees' conditions could not be implemented. This decision underscored the importance of ensuring that enterprise agreements provide adequate protections for employees and comply with the legislative standards.

PWB Anchor Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established