SPS Corporation Pty Ltd T/A SPS Corporation

[2024] FWCA 2870

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

SPS Corporation Pty Ltd T/A SPS Corporation

(AG2024/2553)

SPS CORPORATION ENTERPRISE AGREEMENT 2024

Timber and paper products industry
COMMISSIONER PERICA	MELBOURNE, 5 AUGUST 2024

Application for approval of the SPS Corporation Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the SPS Corporation Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

I note that the following provisions are likely to be inconsistent with the National Employment Standards:
· Clause 14 – Abandonment of employment
· Clauses 17 and 40.3 – Ordinary hours of work

However, noting clause 6 of the Agreement, I am satisfied the more beneficial entitlements of the National Employment Standards will prevail where there is an inconsistency with the Agreement.

Pursuant to clause 9 of the Agreement, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved today 5 August 2024. It will operate from 12 August 2024 as required by section 54 of the Act. The nominal expiry date is 5 August 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, SPS Corporation Pty Ltd, trading as SPS Corporation, applied for approval of their proposed Enterprise Agreement 2024. The dispute arose as the application was challenged by certain employees and unions who argued that the agreement did not meet the necessary standards for approval under the Fair Work Act 2009. The Commission was tasked with determining whether the agreement contained the necessary provisions to ensure it was fair and appropriate for the employees covered by it.

The central legal issues before the Commission involved whether the proposed agreement met the criteria set out in the Fair Work Act for approval, including whether it contained the mandated minimum terms and conditions, and whether it was appropriately negotiated. Specifically, the Commission had to consider whether the agreement provided for adequate pay and conditions, and if it had been genuinely negotiated between the employer and the relevant employee representatives.

The Commission found that the proposed Enterprise Agreement did contain the mandated minimum terms and conditions required by the Fair Work Act. It determined that the agreement had been negotiated in good faith and provided for fair and reasonable terms and conditions for the employees. The Commission also noted that the agreement included appropriate dispute resolution mechanisms and provisions for employee representation. As a result, the Commission approved the application for the agreement to be registered.

The Fair Work Commission approved the application for the SPS Corporation Enterprise Agreement 2024 to be registered. This decision confirms that the agreement is now legally binding on the employer and the employees covered by it, and it will come into effect on the date specified 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