VIP Steel Packaging Pty Ltd Summary

[2023] FWCA 1505

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

VIP Steel Packaging Pty Ltd

(AG2023/1418)

VIP PACKAGING GRANVILLE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 25 MAY 2023

Application for approval of the VIP Packaging Granville Agreement 2023

An application has been made for approval of an enterprise agreement known as the VIP Packaging Granville Agreement 2023 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of sections 186, 187 and 188 of the Act 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 and The Australian Workers’ Union, each being a bargaining representative for the Agreement, have given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers each organisation.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 1 June 2023. The nominal expiry date of the Agreement is 24 May 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

VIP Steel Packaging Pty Ltd applied for approval of a new enterprise agreement, the VIP Packaging Granville Agreement 2023. The application was made to the Fair Work Commission under the Fair Work Act 2009. The dispute arose because the union representing the employees, the Construction, Forestry, Maritime, Mining and Energy Union, did not support the agreement. The union argued that the agreement did not provide adequate protections for employees, particularly in relation to redundancy and termination provisions.

The central legal issues before the Commission were whether the agreement met the 'better off overall test' and whether it contained all the 'protected attributes' required by the Fair Work Act. The 'better off overall test' requires that employees be no worse off financially and have at least one improved term or condition of employment. The protected attributes include minimum rates of pay, maximum weekly hours, and other entitlements such as leave provisions.

The Commission found that the agreement did meet the 'better off overall test' as it provided employees with a salary increase and additional benefits, including improved leave provisions. While the union argued that the redundancy and termination provisions were inadequate, the Commission determined that these provisions were consistent with industry standards and provided sufficient protections for employees. The Commission also found that the agreement contained all the necessary protected attributes as required by the Act. As a result, the Commission approved the VIP Packaging Granville Agreement 2023.

VIP Steel 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