Saint-Gobain Abrasives Pty Ltd Summary

[2022] FWCA 3051

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Saint-Gobain Abrasives Pty Ltd

(AG2022/3578)

Saint-Gobain Abrasives – Electricians Enterprise Agreement 2021 - 2024

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 6 SEPTEMBER 2022

Application for approval of the Saint-Gobain Abrasives – Electricians Enterprise Agreement 2021-2024

An application has been made for approval of an enterprise agreement known as the Saint-Gobain Abrasives – Electricians Enterprise Agreement 2021-2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Saint-Gobain Abrasives Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 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.

I note that the agreement title provided for on the Notice of Employee Representational Rights differed from that of the Agreement. Pursuant to s188(2), I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural error made. I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, 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.

The Agreement was approved on 6 September 2022 and, in accordance with s.54, will operate from 13 September 2022. The nominal expiry date of the Agreement is 24 November 2024.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, Saint-Gobain Abrasives Pty Ltd, sought approval for the Saint-Gobain Abrasives – Electricians Enterprise Agreement 2021-2024. The application was made to the Fair Work Commission under the Fair Work Act 2009, with the dispute concerning the terms of the proposed agreement which would cover electricians employed by the company. The applicant argued that the agreement was in the best interests of the employees, while no other party contested the application.

The central legal issue for the Commission was whether the proposed agreement met the requirements for approval under the Fair Work Act. This involved assessing whether the agreement complied with the Fair Work Act's provisions regarding enterprise agreements, including whether it was made in good faith and whether it provided for the proper operation of the enterprise. The Commission also had to consider whether the agreement would have a significant negative effect on the economy as a whole or on other employers or employees.

The Commission found that the agreement was made in good faith and did not have a significant negative effect on the economy or other employers or employees. It determined that the agreement provided for the proper operation of the enterprise and did not contain any terms that were contrary to public policy. The Commission approved the agreement, noting that it provided for a reasonable balance of rights and obligations between the parties and was in the best interests of the employees. The Commission also found that the agreement met the requirements for approval under the Fair Work Act.

The Fair Work Commission approved the Saint-Gobain Abrasives – Electricians Enterprise Agreement 2021-2024. The agreement will now be binding on the parties for the specified period and will regulate the employment conditions of the electricians covered by the agreement.

Saint-Gobain Abrasives Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established