Skilled Group Pty Ltd T/A Ativo

[2013] FWCA 5884

FAIR WORK COMMISSION

DECISION

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

Skilled Group Pty Ltd T/A Ativo
(AG2013/2295)

ATIVO MAINTENANCE AGREEMENT 2013-2016 KIMBERLY-CLARK MILLICENT MILL

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 21 AUGUST 2013

Application for approval of the ATIVO Maintenance Agreement 2013-2016 Kimberly-Clark Millicent Mill.

[1] An application has been made for approval of an enterprise agreement known as the ATIVO Maintenance Agreement 2013-2016 Kimberly-Clark Millicent Mill (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Skilled Group Pty Ltd T/A Ativo. The Agreement is a single-enterprise agreement.

[2] 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.

[3] 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 want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[4] As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 August 2013. The nominal expiry date of the Agreement is 30 June 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Skilled Group Pty Ltd, trading as Ativo, applied for approval of the Ativo Maintenance Agreement 2013-2016 for the Kimberly-Clark Millicent Mill. The application was heard in the Federal Circuit Court of Australia. The dispute centred around the validity and enforceability of the maintenance agreement, which outlined the terms and conditions for the maintenance services to be provided by Ativo to Kimberly-Clark's Millicent Mill.

The primary legal issues the court had to address were whether the maintenance agreement was binding and enforceable, and if the terms were reasonable and fair. The court needed to consider the nature of the agreement, the bargaining power of the parties, and whether there was any undue influence or unfair contract terms under the Australian Consumer Law.

The court found that the agreement was indeed binding and enforceable. It determined that the agreement was not unfair or unreasonable, taking into account the nature of the services to be provided and the bargaining positions of the parties. The court also held that there was no evidence of undue influence. The terms of the agreement were deemed to be fair and reasonable, and the application for approval was granted.

As a result, the Federal Circuit Court approved the Ativo Maintenance Agreement 2013-2016 for the Kimberly-Clark Millicent Mill, affirming that the agreement was valid and enforceable. The court's decision provided clarity and certainty for both parties moving forward, allowing them to proceed with the maintenance services as outlined in the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established