DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SIG Combibloc Australia Pty Ltd
(AG2020/2741)

SIG COMBIBLOC AUSTRALIA PTY LTD AFMEPKIU/ETU ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
DEPUTY PRESIDENT YOUNG	MELBOURNE, 22 OCTOBER 2020

Application for approval of the SIG Combibloc Australia Pty Ltd AFMEPKIU/ETU Enterprise Agreement 2020.

[1] SIG Combibloc Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the SIG Combibloc Australia Pty Ltd AFMEPKIU/ETU Enterprise Agreement 2020 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application, the accompanying statutory declaration, and the additional information provided by the Employer, 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.

[4] Pursuant to s 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they seek to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declarations provided by the organisations, I note that the Agreement covers the organisations.

[7] The Agreement was approved on 22 October 2020 and, in accordance with s 54, will operate from 29 October 2020. The nominal expiry date of the Agreement is 2 August 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved SIG Combibloc Australia Pty Ltd, who sought approval for their Enterprise Agreement 2020. This agreement was submitted for consideration under the Fair Work Act 2009. The nature of the dispute centred on the fairness and appropriateness of the proposed agreement terms, specifically in relation to employee pay and conditions. The decision was made by the Fair Work Commission, which is responsible for overseeing such agreements in Australia.

The primary legal issues before the court included whether the agreement met the "no disadvantage test," ensuring employees were not worse off, and whether it complied with the "better off overall test," which requires that employees be better off overall with the new agreement than under the applicable award or agreement. Additionally, the court needed to determine if the agreement had been genuinely negotiated and whether it contained necessary provisions such as dispute resolution mechanisms.

The Fair Work Commission found that the agreement met all required legal standards. It determined that employees would not be disadvantaged and were indeed better off overall due to the enhanced pay and conditions. The Commission also confirmed that the agreement had been genuinely negotiated and contained all necessary provisions. Consequently, the application for approval was successful, and the Enterprise Agreement 2020 was approved.

As a result of the approval, the Enterprise Agreement 2020 is now legally binding on SIG Combibloc Australia Pty Ltd and its employees. This decision sets a precedent for similar agreements within the industry and reinforces the importance of meeting the statutory requirements for enterprise agreements.

SIG Combibloc Australia Pty Ltd

DECISION

Annexure A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established