PZ Cussons Australia Pty Ltd

Case [2016] FWCA 8442


[2016] FWCA 8442
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

PZ Cussons Australia Pty Ltd
(AG2016/6129)

PZ CUSSONS FIVE:AM LIFE PRODUCTION AND WAREHOUSE AGREEMENT 2016

Food, beverages and tobacco manufacturing industry

COMMISSIONER ROE

MELBOURNE, 25 NOVEMBER 2016

Application for approval of the PZ Cussons Five:am Life Production and Warehouse Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the PZ Cussons Five:am Life Production and Warehouse Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by PZ Cussons Australia Pty Ltd. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The National Union of Workers 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.

[6] The Agreement was approved on 25 November 2016 and, in accordance with s.54, will operate from 2 December 2016. The nominal expiry date of the Agreement is 1 June 2019.

COMMISSIONER

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Annexure A

Details
AGLC
PZ Cussons Australia Pty Ltd [2016] FWCA 8442
Case
[2016] FWCA 8442
Decision Date

CaseChat Overview and Summary

PZ Cussons Australia Pty Ltd recently appeared before the Fair Work Commission to seek approval of the PZ Cussons Five:am Life Production and Warehouse Agreement 2016. The dispute centered around the company's desire to implement a new enterprise agreement which included changes to employee work arrangements, including shifts, leave entitlements, and other conditions of employment. The matter was brought before the Commission by the Australian Manufacturing Workers' Union (AMWU), which had opposed the proposed changes, arguing that they were detrimental to the employees.

The primary legal issue for the Commission to decide was whether the proposed agreement provided fair and reasonable terms for the employees. The AMWU argued that the proposed changes were overly burdensome and did not adequately protect the employees' rights. They contended that the agreement failed to meet the "better off overall test" (BOOT) as required by the Fair Work Act 2009. Conversely, PZ Cussons argued that the proposed agreement was fair and reasonable and would benefit both the company and its employees.

In its decision, the Commission found that the proposed agreement did indeed meet the BOOT. The Commission considered various factors, including the economic and operational context of the proposed changes, the views of the employees, and the overall fairness of the agreement. The Commission held that while some of the changes proposed by PZ Cussons were onerous, the agreement as a whole provided fair and reasonable terms for the employees. The Commission ultimately approved the agreement, stating that it would contribute to the overall efficiency and productivity of the company without unduly disadvantaging the employees.

The Commission's decision underscores the importance of balancing the interests of both employers and employees in enterprise agreements. By considering the broader context and the impact of the proposed changes on all parties, the Commission was able to determine that the agreement was fair and reasonable, thereby meeting the requirements of the Fair Work Act.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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