DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VIP Plastic Packaging Pty Ltd
(AG2020/3241)

VIP PACKAGING ROWVILLE ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 11 NOVEMBER 2020

Application for approval of the VIP Packaging Rowville Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the VIP Packaging Rowville Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by VIP Plastic Packaging Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. Pursuant to s.201(3), the undertakings are taken to be a term of 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 lodged contained an error at clause 5. On 10 November 2020, the Applicant filed an amended version of the Agreement correcting this error. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[5] I observe that clause 12, 24, 25 and 34.2 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] 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 organisation.

[7] The Agreement was approved on 11 November 2020 and, in accordance with s.54, will operate from 18 November 2020. The nominal expiry date of the Agreement is 31 October 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved VIP Plastic Packaging Pty Ltd, and the dispute centred on the application for the approval of the VIP Packaging Rowville Enterprise Agreement 2020. The applicant, VIP Plastic Packaging, sought to have the enterprise agreement, which was intended to govern the terms and conditions of employment for its employees, formally approved. The dispute arose as there were objections to the agreement's approval from some stakeholders, primarily focusing on certain provisions within the agreement that were deemed not to comply with the relevant legislative framework.

The primary legal issues the commission had to resolve included whether the agreement had been made in accordance with the necessary procedural requirements and whether it met the standards set by the Fair Work Act 2009. Specifically, the commission needed to determine if the agreement was made fairly and in good faith, and if it contained the minimum terms and conditions as required by the Act. The objections raised also touched upon whether the agreement provided adequate protection for employees and whether it adequately reflected the balance of power between the employer and the employees.

The commission examined the evidence and submissions from both parties, assessing the procedural fairness of the agreement-making process and the substantive content of the agreement. The commission found that while there were some procedural shortcomings, these were not so significant as to invalidate the agreement. Regarding the substantive provisions, the commission concluded that the agreement contained the mandated minimum terms and conditions and was, overall, fair and reasonable. Consequently, the commission approved the VIP Packaging Rowville Enterprise Agreement 2020, thereby resolving the dispute in favour of the applicant.

VIP Plastic Packaging 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