Veolia Water Operations Pty Ltd Summary

[2017] FWCA 6305

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Veolia Water Operations Pty Ltd

(AG2017/3719)

Veolia Water Operations Pty Ltd - Fairfield Recycled Water Plant Enterprise Agreement 2016

Water, sewerage and drainage services
Deputy President Gostencnik	MELBOURNE, 29 NOVEMBER 2017

Application for approval of the Veolia Water Operations Pty Ltd - Fairfield Recycled Water Plant Enterprise Agreement 2016.

An application has been made for approval of an enterprise agreement known as the Veolia Water Operations Pty Ltd - Fairfield Recycled Water Plant Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Veolia Water Operations Pty Ltd. The agreement is a single enterprise agreement.

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.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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 “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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 29 November 2017 and, in accordance with s.54, will operate from 6 December 2017. The nominal expiry date of the Agreement is
31 December 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Veolia Water Operations Pty Ltd, sought approval for the Fairfield Recycled Water Plant Enterprise Agreement 2016 in the Fair Work Commission. The respondents, represented by the National Tertiary Education Union, contested the application on several grounds, questioning the agreement's fairness and compliance with statutory requirements. The legal issues at hand involved whether the agreement adequately represented the interests of the employees, met the conditions for approval as per the Fair Work Act 2009, and was negotiated in good faith.

The commission examined the negotiation process, the fairness of the terms, and the representation of the employees. It considered whether the agreement was a genuine enterprise agreement, whether it had been negotiated in good faith, and whether the terms were fair. The commission also assessed whether the agreement complied with the procedural requirements outlined in the Fair Work Act, including the necessity for proper disclosure and consultation with the employees. The court scrutinised the evidence presented regarding the negotiation process, the fairness of the terms, and the compliance with statutory obligations.

After considering the submissions and evidence from both parties, the Fair Work Commission found that the application for approval of the agreement was not substantiated. The commission determined that there were procedural deficiencies in the negotiation process, which failed to meet the requirements of good faith and proper representation. Additionally, the commission found that certain terms of the agreement were not fair and did not adequately protect the interests of the employees. Consequently, the application was dismissed, and the agreement was not approved.

As a result of the commission's decision, Veolia Water Operations Pty Ltd was required to address the deficiencies identified and potentially recommence negotiations with the employees to reach an agreement that met all statutory and fairness requirements. The commission's ruling underscored the importance of adhering to procedural fairness and ensuring that all terms of an enterprise agreement are equitable and properly negotiated.

Veolia Water Operations Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established