THE ALCOA WORLD ALUMINA AUSTRALIA WA OPERATIONS AWU

[2014] FWCA 1613

FAIR WORK COMMISSION

CORRECTION TO DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Alcoa of Australia Ltd T/A Alcoa World Alumina Australia
(AG2014/3552)

THE ALCOA WORLD ALUMINA AUSTRALIA WA OPERATIONS AWU ENTERPRISE AGREEMENT 2014

Aluminium industry
COMMISSIONER WILLIAMS	PERTH, 11 MARCH 2014

Application for approval of The Alcoa World Alumina Australia WA Operations AWU Enterprise Agreement 2014.

[1] The decision issued by the Fair Work Commission on 10 March 2014 [[2014] FWCA 1613] is corrected as follows:

1. By deleting the expiry date “31 March 2014” where it appears in paragraph [5] and replacing it with “31 March 2017”.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The dispute before the Fair Work Commission involved the Alcoa World Alumina Australia WA Operations (Alcoa) and the Australian Workers' Union (AWU). Alcoa sought to terminate an existing enterprise agreement and replace it with a new agreement that would include changes to employee entitlements and conditions. The AWU opposed the termination and proposed changes, arguing that they were inconsistent with the process for terminating an enterprise agreement as outlined in section 185 of the Fair Work Act 2009 (Cth). The Fair Work Commission was tasked with determining whether the termination and proposed changes were valid.

The primary legal issue before the Commission was whether the process followed by Alcoa to terminate the existing enterprise agreement and propose a new one complied with the statutory requirements outlined in section 185 of the Fair Work Act. Specifically, the Commission needed to determine whether the termination and proposed changes were consistent with the good faith bargaining requirements and whether they adhered to the procedural fairness principles. The AWU argued that the process was flawed and did not comply with the statutory requirements, while Alcoa maintained that the process was valid and in line with the legislative provisions.

The Fair Work Commission found that the process followed by Alcoa was inconsistent with the statutory requirements outlined in section 185 of the Fair Work Act. The Commission held that Alcoa had failed to engage in good faith bargaining and had not provided the AWU with sufficient information to enable meaningful negotiations. The Commission also found that the proposed changes to the enterprise agreement were inconsistent with the requirements of the Act, as they did not take into account the interests of the employees. As a result, the Commission determined that the termination of the existing enterprise agreement and the proposed changes were invalid and could not proceed.

The Fair Work Commission ordered that the existing enterprise agreement remain in force and that the proposed changes to the agreement could not be implemented. The Commission also ordered that Alcoa and the AWU engage in further negotiations to reach a new enterprise agreement that complied with the statutory requirements. The Commission held that the parties had a duty to bargain in good faith and to provide each other with sufficient information to enable meaningful negotiations. The Commission further ordered that any future negotiations be conducted in a manner that complied with the legislative provisions and the principles of procedural fairness.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established