SCA Hygiene Australasia

Case [2013] FWCA 6357


[2013] FWCA 6357

The attached document replaces the document previously issued with the above code on 30 August 2013

To replace the word 'Laprapinta' in the title of the decision with the word 'Larapinta’.

Alyce Bowe

Associate to Commissioner Bull

Dated 4 September 2013

[2013] FWCA 6357

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

SCA Hygiene Australasia
(AG2013/2004)

SCA HYGIENE AUSTRALASIA LARAPINTA ENTERPRISE AGREEMENT 2013

Storage services

COMMISSIONER BULL

SYDNEY, 30 AUGUST 2013

Application for approval of the SCA Hygiene Australasia Larapinta Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the SCA Hygiene Australasia Larapinta Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Commission notes that the Agreement provides at clause 21 - Ordinary hours of work, and in particular, sub clause 21.3 a spread of ordinary hours that are greater than the ordinary hours of work provided for in the Storage Services and Wholesale Award 2010 (the Award), being the relevant modern award for the purpose of the better off overall test.

[3] The Commission questioned the increase in the spread of ordinary hours and how employees covered by this Agreement are better off overall. The Applicant has advised that the Larapinta DC (the site) operates from 5:00am to 5:00pm, Monday to Friday and has provided calculations that the rates of pay in the Agreement are significantly higher, and compensates for the additional increase in the span of ordinary working hours. I am satisfied that the increase in the spread of ordinary hours satisfies the better off overall test.

[4] With respect to clause 24 - Special provisions for shiftworkers, and in particular, sub clause 24.2, the Agreement provides an entitlement for afternoon and night shift allowances. The night shift allowance provided to an employee who works less than four consecutive weeks on night shift is entitled to an allowance that is less than the Award. The Applicant has advised that as a result of the site operating hours, no employee is rostered on afternoon or night shifts and that this is unlikely to change during the life of the Agreement.

[5] With respect to clause 27 - Overtime, and in particular, sub clause 27.2, the payment for overtime is paid at 1.7 times the employee’s ordinary time rate of pay. The Award provides for payment of overtime to employees for all time worked in excess or outside of the hours of work to be paid at the rate of time and a half for the first two hours and double time after that. The Applicant has advised that the majority of overtime is worked on Monday to Friday and is of less than 2 hours duration.

[6] The Agreement covers employees engaged by the Company for the purpose of general warehousing and forklift activities at the Larapinta site. I am satisfied that pursuant to s.186(3A) of the Act, this group is fairly chosen as being operationally or organisationally distinct.

[7] I am satisfied that each of the requirements of ss.187 and 188 of the Act as are relevant to the application for approval have been met.

[8] The Agreement is approved. In accordance with s.54(1) the Agreement will operate from 6 September 2013. The nominal expiry date of the Agreement is 7 May 2016.

COMMISSIONER

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Details
AGLC
SCA Hygiene Australasia [2013] FWCA 6357
Case
[2013] FWCA 6357
Decision Date

CaseChat Overview and Summary

SCA Hygiene Australasia sought approval for the SCA Hygiene Australasia Larapinta Enterprise Agreement 2013. The applicant, SCA Hygiene Australasia, is a company involved in the production and distribution of personal care products. The dispute arose in relation to the enterprise agreement which covers employees in the manufacturing and distribution sector. The Fair Work Commission was the court that heard and decided this case.

The central legal issue before the Commission was whether the enterprise agreement met the requirements of section 230 of the Fair Work Act 2009. This section mandates that an enterprise agreement must provide for certain minimum terms and conditions, including those concerning pay, hours of work, and other employment-related matters. The Commission had to assess if the agreement was fair and equitable for all parties involved, particularly the employees.

In examining the application, the Commission took into account various factors such as the negotiation process, the nature of the agreement, and its impact on the employees. The Commission noted that the agreement had been negotiated in good faith and that it provided for fair terms and conditions. After careful consideration, the Commission found that the agreement met all the necessary legal requirements and was in the best interests of the employees. Consequently, the Commission approved the enterprise agreement.

The final order of the Commission was the approval of the SCA Hygiene Australasia Larapinta Enterprise Agreement 2013, which was deemed to be fair and reasonable. This decision ensures that the agreement will govern the employment terms and conditions for the employees covered by it, providing a legally binding framework for their working relationship with the company.

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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