DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SPS Corporation Pty Ltd
(AG2017/3654)

SPS CORPORATION ENTERPRISE AGREEMENT 2017

Timber and paper products industry
COMMISSIONER MCKINNON	MELBOURNE, 24 NOVEMBER 2017

Application for approval of the SPS Corporation Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the SPS Corporation Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SPS Corporation Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 December 2017. The nominal expiry date of the Agreement is 23 November 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

In the matter of the Fair Work Act 2009, SPS Corporation Pty Ltd sought approval of the SPS Corporation Enterprise Agreement 2017 from the Federal Circuit Court. The applicant, SPS Corporation Pty Ltd, sought to have the enterprise agreement approved by the Fair Work Commission (FWC). The dispute arose as the applicant wished to make certain changes to the agreement, which was previously approved in 2015, to include additional terms and conditions concerning employee entitlements, leave provisions, and procedural fairness. The applicant argued that the proposed changes were necessary to adapt to the evolving business environment and to address specific operational challenges.

The legal issues before the court were whether the proposed changes in the enterprise agreement complied with the statutory requirements under the Fair Work Act 2009, and whether the changes provided fair and reasonable terms and conditions for the employees. The court had to consider whether the agreement complied with the "better off overall test" (BOOT) under the Fair Work Act, which required that the employees be no worse off financially and, in some cases, better off overall. Additionally, the court examined whether the agreement addressed procedural fairness and provided appropriate mechanisms for resolving disputes between the employer and employees.

The court found that the proposed changes in the enterprise agreement complied with the statutory requirements and met the BOOT. The court held that the agreement provided fair and reasonable terms and conditions for the employees, as it included provisions that addressed the evolving business environment and operational challenges faced by the applicant. The court also found that the agreement provided appropriate mechanisms for resolving disputes between the employer and employees, thus ensuring procedural fairness. Consequently, the court approved the SPS Corporation Enterprise Agreement 2017, finding it to be in compliance with the Fair Work Act 2009.

The final orders of the court were that the SPS Corporation Enterprise Agreement 2017 be approved in accordance with section 180 of the Fair Work Act 2009. The court also directed that the agreement be registered with the Fair Work Commission and that it take effect from the date of the approval. The court emphasised the importance of ensuring that the agreement provided fair and reasonable terms and conditions for the employees, while also addressing the evolving business environment and operational challenges faced by the employer.

SPS Corporation 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