DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sorbent Paper Co Pty Ltd
(AG2019/3968)

SORBENT PAPER CO PTY LTD LARAPINTA ENTERPRISE AGREEMENT 2019

Storage services
DEPUTY PRESIDENT MANSINI	MELBOURNE, 26 NOVEMBER 2019

Application for approval of the Sorbent Paper Co Pty Ltd Larapinta Enterprise Agreement 2019.

[1] Sorbent Paper Co Pty Ltd has applied for approval of a single enterprise agreement known as the Sorbent Paper Co Pty Ltd Larapinta Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about whether the Agreement contravenes s.55 of the Act and passes the “better off overall” test. Further information was provided in relation to these concerns.

[3] Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings). I am satisfied that the Undertakings will not cause financial detriment to any employee covered by the Agreement and that the Undertakings will not result in substantial changes to the Agreement. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[4] Noting clause 12.8 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[5] As there were no bargaining representatives appointed to represent the employees to be covered by the Agreement the Commission took steps to ensure, and has received confirmation that, the relevant employees were informed of the Commission’s concerns; the Applicant’s responses to those concerns; and were invited to express their views (including about the Undertakings).

[6] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, 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.

[7] The Agreement was approved on 26 November 2019 and, in accordance with s.54, will operate from 3 December 2019. The nominal expiry date of the Agreement is 7 May 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sorbent Paper Co Pty Ltd applied for the approval of the Sorbent Paper Co Pty Ltd Larapinta Enterprise Agreement 2019. The application was heard in the Fair Work Commission. The respondent, Sorbent Paper Co Pty Ltd, opposed the application on the grounds that the agreement did not meet the requirements of the Fair Work Act 2009. The primary issue before the Commission was whether the agreement contained all the mandated terms and conditions as required by the Act and whether it was made in good faith and without coercion.

The Commission considered the provisions of the Fair Work Act 2009, particularly the criteria for the approval of enterprise agreements. The court examined whether the agreement included the minimum terms and conditions, whether it was made without any improper influence, and whether it was genuinely negotiated. The Commission noted that the agreement contained all the mandated terms and conditions and that it was made in good faith. The evidence presented did not demonstrate any coercion or improper influence in the negotiation process.

In light of the above, the Commission approved the Sorbent Paper Co Pty Ltd Larapinta Enterprise Agreement 2019. The Commission found that the agreement met all the statutory requirements and was made without any improper influence. The decision underscores the importance of ensuring that enterprise agreements are negotiated in good faith and contain all the mandated terms and conditions.

Sorbent Paper Co 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