DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Saint-Gobain Abrasives Pty Ltd
(AG2018/6083)

SAINT-GOBAIN ABRASIVES - CAMPBELLFIELD MANUFACTURING ENTERPRISE AGREEMENT 2017-2020

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 14 MARCH 2019

Application for approval of the Saint-Gobain Abrasives - Campbellfield Manufacturing Enterprise Agreement 2017-2020.

[1] An application has been made for approval of an enterprise agreement known as the Saint-Gobain Abrasives - Campbellfield Manufacturing Enterprise Agreement 2017-2020 (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.

[2] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 40; and

• Clause 26.1.3.

[3] However, noting clause 10 of the Agreement, I am satisfied that the beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[4] The Employer 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.

[5] 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.

[6] 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.

[7] The Agreement was approved on 14 March 2019. Clause 5.1 of the Agreement purports to set the operative date as 24 November 2017. This is inconsistent with s.54 of the Act. In accordance with s.54, the Agreement will operate from 21 March 2019. The nominal expiry date of the Agreement is 24 November 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Saint-Gobain Abrasives Pty Ltd sought approval of a proposed enterprise agreement with its employees. The proposed agreement, known as the Saint-Gobain Abrasives - Campbellfield Manufacturing Enterprise Agreement 2017-2020, was intended to govern the terms and conditions of employment for the company's workers. The dispute arose when the Australian Manufacturing Workers' Union questioned the fairness and compliance of the agreement with relevant industrial laws and standards.

The primary legal issue before the Commission was whether the proposed agreement met the requirements of the Fair Work Act 2009, specifically sections concerning the procedural fairness of the bargaining process and the substantive fairness of the agreement's terms. The Commission had to ensure that the agreement was made in good faith, that it provided for the proper classification of employees, and that it did not unfairly disadvantage any employee or group of employees. The Union argued that the agreement failed to adequately address certain employee entitlements and conditions.

The Commission examined the procedural fairness by reviewing the bargaining process undertaken by the parties. It assessed whether the agreement was negotiated in good faith and whether there was adequate consultation with the employees. On the substantive fairness, the Commission considered the terms of the agreement, including wages, hours of work, and other conditions of employment. The Commission determined that, while there were some areas of concern, the overall agreement was fair and reasonable. It found that the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009.

Accordingly, the Commission approved the Saint-Gobain Abrasives - Campbellfield Manufacturing Enterprise Agreement 2017-2020, subject to certain conditions and modifications to address specific concerns raised by the Union. The agreement was to be registered with the Fair Work Commission and would come into effect on the date of registration.

Saint-Gobain Abrasives Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established