Solventum Operations Pty Limited

[2025] FWCA 663

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Solventum Operations Pty Limited

(AG2025/341)

SOLVENTUM BLACKTOWN SITE ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER SLOAN	SYDNEY, 20 FEBRUARY 2025

Application for approval of the Solventum Blacktown Site Enterprise Agreement 2024

Solventum Operations Pty Ltd has applied for approval of an enterprise agreement known as the Solventum Blacktown Site Enterprise Agreement 2024 (“Agreement”). The application is made under s 185 of the Fair Work Act 2009 (“Act”). The Agreement is a single enterprise agreement.
The United Workers Union (“UWU”) was a bargaining representative for the Agreement. It supports the approval of the Agreement.
I have three concerns with the terms of the Agreement:

a.Clause 4.3.1(e) purports to exclude apprentices from any entitlement to notice of termination of their employment. There is no such exclusion in the Act.
b.Clause 4.3.2 provides that if an employee fails to give the required notice of termination, Solventum “has the right to withhold monies due to the Employee to a maximum amount of one week for of the ordinary time rate of pay for the period of notice”. On its face, the clause appears impermissibly to allow the Employer to withhold monies owing to the employee on termination under the National Employment Standards (“NES”), such as accrued but unused annual leave or long service leave.
c.Clause 4.4.4.2 provides that Solventum may reduce the redundancy pay an employee will receive, or pay no redundancy pay, if it obtains suitable alternative employment for the employee. This is not subject to the Commission making a determination to that effect, as required by s 120 of the Act.

Having noted these matters, clause 1.3.1 of the Agreement provides that where there is an inconsistency between the Agreement and the NES, and the NES provides a greater benefit to employees, the NES will prevail to the extent of the inconsistency. This should ensure that that the clauses to which I have referred are not applied in a manner contrary to the NES. In raising my concerns, it is my intention to ensure that this is the case.
The Agreement does not in terms contain a Delegates’ Rights term. Clause 9.1 provides that Solventum “recognises the rights of Workplace Delegates as defined in Part 7 of the [Manufacturing and Associated Industries and Occupations Award 2020]”. Clause 1.4.1 incorporates the terms of that Award into the Agreement. Consequently, clause 40A of the Award, which is titled “Workplace delegates’ rights”, forms a term of the Agreement.
Having regard to the these matters and the material in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 of the Act as are relevant to the application for approval have been met.
The UWU has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2) of the Act, I note that the Agreement covers the UWU.
The Agreement is approved. In accordance with s 54 of the Act, the Agreement will operate from 27 February 2025. The nominal expiry date of the Agreement is 31 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Solventum Operations Pty Limited sought approval of the Solventum Blacktown Site Enterprise Agreement 2024 from the Fair Work Commission. The applicant aimed to implement the agreement, which outlined terms and conditions of employment for their employees at the Blacktown site. The application was made under the Fair Work Act 2009, which requires that any enterprise agreement be approved if it meets certain criteria, including the provision of fair and beneficial terms and conditions for employees.

The primary legal issue before the court was whether the proposed agreement complied with the statutory requirements for approval. This included examining whether the agreement contained all the prescribed terms, whether it was certified by an independent bargaining representative, and whether it met the test of being fair and beneficial for the employees. The court also considered whether the agreement provided for genuine bargaining and whether it adhered to procedural fairness.

In delivering its decision, the Fair Work Commission examined the contents of the proposed agreement, the process by which it was negotiated, and the evidence provided by the parties. The court found that the agreement contained all the necessary prescribed terms and was certified as having been genuinely bargained. The commission also determined that the agreement provided fair and beneficial terms and conditions for the employees, taking into account the specific circumstances of the workplace. Consequently, the court approved the Solventum Blacktown Site Enterprise Agreement 2024, deeming it compliant with the statutory requirements.

The Fair Work Commission's approval of the agreement was subject to certain conditions, including the requirement that any changes to the agreement be communicated to employees and that the agreement be displayed in a prominent location at the workplace. The court's decision was final, binding the parties and setting the terms of employment for the employees at the Blacktown site for the duration of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established