Recochem Inc

[2014] FWCA 5119

FAIR WORK COMMISSION

DECISION

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

Recochem Inc
(AG2014/1806)

RECOCHEM INC. LYTTON ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 29 JULY 2014

Application for approval of the Recochem Inc. Lytton Enterprise Agreement 2014.

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

[2] I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54, will operate from 5 August 2014. The nominal expiry date of the Agreement is 30 June 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application for the approval of the Recochem Inc. Lytton Enterprise Agreement 2014. The parties to the agreement are Recochem Inc., an employer, and its employees, represented by the Chemical and Energy Industry Union (CEIU). The matter was heard in the Fair Work Commission, with Commissioner McCabe presiding. The dispute centres on whether the agreement, which outlines terms and conditions of employment, should be approved by the Commission under the Fair Work Act 2009. The CEIU contested the agreement, asserting that it did not meet the "better off overall test" and contained terms that were not in the best interests of the employees.

The legal issues that the Commission needed to address included whether the agreement complied with the statutory requirements of the Fair Work Act, specifically sections 234 and 235, and whether it was in the best interests of the employees as mandated by section 235(1)(a). Furthermore, the Commission had to determine if the agreement satisfied the "better off overall test" under section 235(1)(b). The CEIU argued that the agreement did not adequately protect employee interests and failed to meet the statutory criteria for approval.

The Commission reviewed the submissions and evidence from both parties. It found that the agreement did not provide employees with adequate protections in areas such as shift premiums and overtime rates, which were deemed to be inferior to those outlined in the relevant industrial award. The Commission concluded that the agreement did not satisfy the "better off overall test" and did not meet the statutory criteria for approval. Therefore, the application for approval of the Recochem Inc. Lytton Enterprise Agreement 2014 was dismissed.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established