VIP Plastic Packaging Pty Ltd

[2019] FWCA 7315

[2019] FWCA 7315

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VIP Plastic Packaging Pty Ltd
(AG2019/2490)

VIP PACKAGING LAVERTON NORTH ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 24 OCTOBER 2019

Application for approval of the VIP Packaging Laverton North Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the VIP Packaging Laverton North Enterprise Agreement 2019 (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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] On 10 July 2019, the Applicant provided an undertaking to the Commission advising that the parties agree not to publish the wage rates in the Agreement for reasons pertaining to commercial sensitivity. In the undertaking, the Applicant advised that employees will be paid in accordance with the rates of pay outlined in the ‘wage rate letter’ filed in the Commission and dated 12 June 2019. The wage rate letter was signed by the employer and the National Union of Workers (NUW). The Agreement as filed on 10 July 2019 did not contain rates of pay.

[5] The matter was subsequently listed for conference in order to deal with this issue.

[6] Clause 6(a) of the Agreement provides that the terms of the Manufacturing and Associated Industries and Occupations Award 2010 (the Award), as varied from time to time are incorporated into the Agreement. Clause 6(c) further provides that in applying the Award to the workplace, the employer commits to no overall financial disadvantage to employees. Clause 9 of the Agreement provides an annual percentage increase to the rates of pay for a period of four years with the first percentage increase of 2.5 percent being applicable as of 1 July 2019. As the Award is incorporated and the 2.5 percent increase is applied to the test time rates of pay, I do not have a concern with respect to the Better Off Overall Test (BOOT). However, I note that employees were advised prior to voting to approve the Agreement that they will receive rates of pay consistent with the wage rate letter issued to them separately to the Agreement. Therefore, to remedy genuine agreement concerns, I accept the Applicant’s undertaking.

[7] As the Agreement does not contain any rates of pay, there is nothing to redact upon publication. The undertaking provides that the pay scales in the wage rate letter dated 12 June 2019 are incorporated as an enforceable term of the Agreement and will be provided to any employee covered by the Agreement upon request or to the relevant unions covered by the Agreement. I also note that the wage rate letter will be available on the Commission’s file should an employee or the unions covered by the Agreement request to access it.

[8] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the NUW being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[9] The Agreement is approved and in accordance with s.54, will operate from 31 October 2019. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

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Annexure A