VIP Plastic Packaging Pty Ltd Summary

[2024] FWCA 68

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

VIP Plastic Packaging Pty Ltd

(AG2023/5088)

VIP PACKAGING ROWVILLE ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT WRIGHT	SYDNEY, 8 JANUARY 2024

Application for approval of VIP Packaging Rowville Enterprise Agreement 2023

Introduction

VIP Plastic Packaging Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the VIP Packaging Rowville Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The notification time for the Agreement was 11 August 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The Agreement was made 7 on December 2023.

Section 190 Undertakings

The employer 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. The undertakings are taken to be a term of the Agreement.

Section 186, 187, 188 and 190

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.

Section 183 Bargaining Representatives

The United Workers’ Union (UWU), 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), I note that the Agreement covers the UWU.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 January 2024. The nominal expiry date of the Agreement is 31 October 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

VIP Plastic Packaging Pty Ltd recently sought approval of the VIP Packaging Rowville Enterprise Agreement 2023, an application that was heard in the Fair Work Commission. The applicant, VIP Plastic Packaging, argued that the agreement met the necessary requirements for approval under the Fair Work Act 2009. The primary dispute centred on whether the agreement adhered to the legal standards for enterprise agreements, including the necessity of fair and genuine bargaining, the provision of adequate information to employees, and compliance with minimum entitlements set forth by the Act.

The Commission was tasked with determining if the agreement was genuinely bargained for, free from any form of coercion or duress, and if it provided sufficient information to employees to allow them to understand the terms of the agreement. Furthermore, the Commission had to verify that the agreement met the minimum standards for pay and conditions as prescribed by the Act. These issues were pivotal in deciding whether the agreement could be formally approved.

In its decision, the Commission meticulously reviewed the bargaining process and found it to be genuine and free from any undue influence. The company had provided employees with comprehensive information, enabling them to understand the terms of the agreement. The Commission also confirmed that the agreement did not fall below the minimum standards for pay and conditions stipulated by the Act. Consequently, the Commission approved the agreement, recognising it as fair and compliant with the legal requirements.

The final orders of the Commission were that the VIP Packaging Rowville Enterprise Agreement 2023 be approved and registered. This decision was made in accordance with section 185 of the Fair Work Act 2009, effectively allowing the agreement to be in force.

VIP Plastic Packaging Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established