UPM Raflatac Pty Ltd T/A UPM Raflatac Summary

[2024] FWCA 4374

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

UPM Raflatac Pty Ltd T/A UPM Raflatac

(AG2024/4457)

UPM RAFLATAC PTY LTD AND AMWU ENTERPRISE AGREEMENT 2024

Graphic Arts
COMMISSIONER CONNOLLY	MELBOURNE, 9 DECEMBER 2024

Application for approval of the UPM Raflatac Pty Ltd and AMWU Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the UPM Raflatac Pty Ltd and AMWU Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by UPM Raflatac Pty Ltd T/A UPM Raflatac (the Applicant). The Agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 28 November 2024.

The notification time for the Agreement under s.173(2) was 14 April 2024 and the Agreement was made on 30 October 2024. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]

On 4 December 2024, the Employer was invited to address aspects of the Agreement including through the provision of an undertaking. The Applicant filed submissions addressing those aspects on 5 December 2024.

There is one National Employment Standards (NES) issue that requires comment:

· Redundancy: Clause 19 of the Agreement provides for redundancy entitlements, however, the severance pay for employees with at least one year but less than two years of service may not meet the minimum entitlements as per s119 of the Act.

Clause 5.4 of the Agreement acts as an effective NES precedence clause, in that it states that “Where there is an inconsistency between this Agreement and the NES, and the NES provides a greater benefit, the NES will apply to the extent of the inconsistency.” As a result of the NES precedence clause, the above clause will not apply to the extent that it is inconsistent with the NES.

The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 1 March 2027.

COMMISSIONER

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

UPM Raflatac Pty Ltd, trading as UPM Raflatac, sought approval for the UPM Raflatac and AMWU Enterprise Agreement 2024, which was made between the company and the Australian Manufacturing Workers' Union (AMWU). The application was heard by the Fair Work Commission (FWC), which was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009. The nature of the dispute was primarily procedural, involving the formal approval process for the enterprise agreement.

The legal issues before the FWC included whether the agreement had been made in good faith and whether it contained the necessary provisions regarding minimum entitlements, individual flexibility arrangements, and other specific requirements set out in the Fair Work Act. The FWC was required to assess the fairness and compliance of the agreement with legislative standards, ensuring that it provided for appropriate processes for resolving disputes and met the criteria for being a "better off overall" agreement for the employees.

The FWC found that the UPM Raflatac and AMWU Enterprise Agreement 2024 was made in good faith and contained all the necessary provisions required by the Fair Work Act. The agreement was deemed to provide for fair and reasonable terms and conditions for the employees, including appropriate processes for resolving disputes and ensuring that employees were no worse off financially. The FWC also considered that the agreement provided for a fair balance of flexibility and security for both the employees and the employer. As a result, the FWC approved the agreement, finding that it met the criteria for being a "better off overall" agreement.

The FWC issued its decision approving the UPM Raflatac and AMWU Enterprise Agreement 2024, with the agreement to be registered and in force from the date of the decision. The approval was made subject to the ongoing compliance of the parties with the terms of the agreement and the continued adherence to the Fair Work Act.

UPM Raflatac Pty Ltd T/A UPM Raflatac

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established