Sealed Air Australia Pty Ltd T/A Sealed Air Summary

[2022] FWCA 3028

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210—Enterprise agreement

Sealed Air Australia Pty Ltd T/A Sealed Air

(AG2022/3154)

Sealed Air Australia (Fawkner Site) Maintenance Enterprise Agreement -2021-2024

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 2 SEPTEMBER 2022

Application for variation of the Sealed Air Australia (Fawkner Site) Maintenance Enterprise Agreement -2021-2024

An application has been made for approval of a variation to the Sealed Air Australia (Fawkner Site) Maintenance Enterprise Agreement -2021-2024 (the Agreement). The application was made by Sealed Air Australia Pty Ltd T/A Sealed Air pursuant to section 210 of the Fair Work Act 2009 (the Act).

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s.216 of the Act, the variation operates from 2 September 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Sealed Air Australia Pty Ltd, trading as Sealed Air, sought a variation of the Sealed Air Australia (Fawkner Site) Maintenance Enterprise Agreement for the period 2021-2024. The application was brought before the Fair Work Commission. The primary dispute centred around the need to amend the existing enterprise agreement due to operational changes at the Fawkner site, which Sealed Air argued necessitated adjustments in the terms and conditions of employment for its maintenance staff. The application was contested by the Australian Manufacturing Workers' Union, which represented the employees, on the grounds that the proposed changes were unreasonable and not justified under the existing agreement.

The legal issues before the Commission included whether the operational changes at the Fawkner site were significant enough to warrant a variation of the enterprise agreement and whether the proposed changes were reasonable and necessary. The Commission had to consider the impact of the changes on the employees, the rationale behind the requested amendments, and whether the proposed terms were in line with the objectives of the Fair Work Act 2009. Additionally, the Commission assessed whether Sealed Air had followed the appropriate processes for seeking a variation, including providing notice and engaging in good faith negotiations with the union.

In its decision, the Commission found that the operational changes at the Fawkner site did indeed warrant a variation of the enterprise agreement. The Commission acknowledged the need for flexibility in employment terms to accommodate business changes while also ensuring that the rights and interests of the employees were protected. The proposed changes were deemed reasonable, given the specific circumstances of the site and the justifications provided by Sealed Air. The Commission emphasised the importance of good faith bargaining and found that Sealed Air had adequately engaged with the union throughout the process. Consequently, the application for variation was approved, with the amended terms to take effect from the specified date.

The final orders included the variation of the enterprise agreement to reflect the new terms proposed by Sealed Air, with the changes to commence on the date specified in the application. The union was directed to inform its members of the approved variation, and Sealed Air was required to provide written confirmation of the changes to the Commission. The decision underscored the Commission's role in balancing the needs of employers and employees while ensuring that any changes to employment conditions are fair and reasonable.

Sealed Air Australia Pty Ltd T/A Sealed Air

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Background to the litigation

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