DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Valvoline (Australia) Pty Ltd
(AG2016/6148)

VALVOLINE (AUSTRALIA) PTY. LIMITED 2016 - 2019 CLERICAL COLLECTIVE ENTERPRISE AGREEMENT

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 1 DECEMBER 2016

Application for approval of the VALVOLINE (AUSTRALIA) PTY. LIMITED 2016 - 2019 CLERICAL COLLECTIVE ENTERPRISE AGREEMENT.

[1] An application has been made for approval of an enterprise agreement known as the VALVOLINE (AUSTRALIA) PTY. LIMITED 2016 - 2019 CLERICAL COLLECTIVE ENTERPRISE AGREEMENT (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Valvoline (Australia) 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Agreement was approved on 1 December 2016 and, in accordance with s.54, will operate from 8 December 2016. The nominal expiry date of the Agreement is 30 September 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Valvoline (Australia) Pty Ltd, an employer, applied to the Fair Work Commission for the approval of a new collective enterprise agreement. This application was opposed by the Australian Manufacturing Workers' Union, the union representing the employees. The dispute centred on the terms of the proposed agreement, particularly concerning the classification of employees and the associated pay rates. The Fair Work Commission was tasked with determining whether the proposed agreement met the statutory requirements for approval.

The primary legal issue before the Commission was whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009. This involved assessing whether the agreement provided for fair and reasonable terms and conditions, including provisions for employee classification, pay rates, and other employment conditions. The Commission needed to ensure that the agreement did not unfairly disadvantage any party and that it met the statutory standards for good faith bargaining and procedural fairness.

The Fair Work Commission found that the proposed agreement did not adequately address the classification of employees, leading to potential discrepancies in pay rates. The Commission determined that the agreement failed to meet the statutory requirements for fair and reasonable terms and conditions. Consequently, the application for approval was dismissed. The Commission emphasised the importance of ensuring that all employees are classified correctly and that their pay rates are commensurate with their roles, in line with the principles of procedural fairness and good faith bargaining.

No final orders were made as the application was dismissed. The Commission's decision highlighted the need for careful consideration of employee classification and pay rates in collective agreements to ensure compliance with the Fair Work Act 2009.

Valvoline (Australia) 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