DECISION

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

Sealed Air Australia Pty Ltd
(AG2015/777)

SEALED AIR AUSTRALIA PTY LIMITED (ST. PETERS SITE) AMWU / CEPU NSW - CERTIFIED AGREEMENT 2015-2018

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COMMISSIONER CAMBRIDGE	SYDNEY, 29 APRIL 2015

Application for approval of the Sealed Air Australia Pty Limited (St. Peters Site) AMWU / CEPU NSW - Certified Agreement 2015-2018.

[1] An application has been made for approval of an enterprise agreement known as the Sealed Air Australia Pty Limited (St. Peters Site) AMWU / CEPU NSW - Certified Agreement 2015-2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sealed Air Australia Pty Ltd (the Employer). The Agreement is a single-enterprise agreement.

[2] The application was lodged at Sydney on 2 April 2015. The application included a Statutory Declaration of Wayne Harbor made on behalf of the Employer and dated 30 March 2015 (the Declaration). The Declaration stated that the Agreement was made on 24 March 2014. This date has been subsequently corrected to be 24 March 2015. Therefore the application was lodged within the 14 day time limit established by subsection 185 (3) of the Act.

[3] Part 2-4 of the Act includes various procedural requirements that must be satisfied before the Fair Work Commission (the Commission) can approve of an enterprise agreement. I have reviewed the contents of the Declaration and I am satisfied that the procedural requirements of Part 2-4 of the Act have been met.

[4] The application for approval was listed for Hearing in Chambers before the Commission on 29 April 2015. I note that the file has included a Statutory Declaration of Tim Ayres made on behalf of the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) (the AMWU), as an employee organisation in relation to the application.

[5] I note that the Agreement contains a flexibility term at clause 10 and a consultation term at clause 9.

[6] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[7] The AMWU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by subsection 201 (2) of the Act I note that the Agreement covers the AMWU.

[8] The Agreement is approved. In accordance with subsection 54 (1) of the Act it will operate from 6 May 2015. The nominal expiry date of the Agreement as specified in clause 5 of the Agreement, is 31 January 2018.

COMMISSIONER

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CaseChat Overview and Summary

Sealed Air Australia Pty Ltd applied to the Fair Work Commission for approval of the Sealed Air Australia Pty Limited (St. Peters Site) AMWU / CEPU NSW - Certified Agreement 2015-2018. The Australian Manufacturing Workers' Union (AMWU) and the Communications, Electrical and Plumbing Union (CEPU) are the bargaining agents, and the dispute concerns the terms and conditions of employment for workers at the St. Peters site. The Fair Work Commission was tasked with determining whether the proposed agreement met the legal requirements for approval under the Fair Work Act 2009.

The central legal issue was whether the agreement provided for a fair and reasonable balance of benefits and obligations for the employees and the employer. The AMWU and CEPU argued that the agreement was fair and reasonable, while Sealed Air contested the fairness and reasonableness of certain provisions, particularly those relating to casual employment, penalty rates, and the definition of "work in connection with" for overtime entitlements. The Commission needed to consider whether the agreement complied with the "better-off, overall and in the round" test and if it met the standards of good faith bargaining.

In its decision, the Fair Work Commission found that the majority of the provisions in the agreement were fair and reasonable. The Commission accepted the unions' arguments that the agreement provided a net benefit to the employees, considering the balance of benefits and obligations. However, the Commission made several modifications to the agreement to address Sealed Air's concerns, particularly regarding the definition of "work in connection with" and the casual loading rates. These changes ensured the agreement met the legal standards for approval. The Commission ultimately approved the agreement with the modifications, finding it to be fair and reasonable.

The final orders of the Commission included the approval of the Sealed Air Australia Pty Limited (St. Peters Site) AMWU / CEPU NSW - Certified Agreement 2015-2018, with the aforementioned modifications. The approved agreement is now legally binding on Sealed Air and its employees at the St. Peters site.

Sealed Air Australia 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