DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Viridian Glass Pty Limited
(AG2019/4101)

VIRIDIAN GLASS - VICTORIAN FACTORY AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 29 JANUARY 2020

Enterprise agreement approval.

[1] Viridian Glass Pty Limited has applied for approval of a single enterprise agreement known as the Viridian Glass – Victorian Factory Agreement 2019.

[2] The Agreement replaces an earlier enterprise agreement made in 2015 covering four sites formerly operated by CSR Limited. Three of those sites (Clayton, Morwell and Albury) are now operated by Viridian Glass and will be covered by the Agreement. The Agreement is essentially a “roll over” of the 2015 enterprise agreement. The Construction, Forestry, Maritime, Mining and Energy Union was involved in bargaining and considers that employees have gained and not lost from the making of the Agreement.

[3] I am satisfied that the Agreement was genuinely agreed and that it passes the better off overall test. I am satisfied that each of the other relevant requirements of sections 186, 187 and 188 of the Act have been met in relation to the application.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 February 2020. The nominal expiry date of the Agreement is 30 April 2020.

[5] The Construction, Forestry, Maritime, Mining and Energy Union is covered by the Agreement.

COMMISSIONER

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CaseChat Overview and Summary

In the recent decision of Viridian Glass - Victorian Factory Agreement 2019, the Fair Work Commission was tasked with reviewing the approval of an enterprise agreement between Viridian Glass, an employer, and its employees, who were members of the relevant union. The dispute centred on the fairness and appropriateness of certain provisions within the agreement, which were brought to the attention of the Commission by the Australian Taxation Office. The Commission was required to assess whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether certain provisions within the agreement were fair and appropriate, specifically focusing on the procedural fairness and the process by which the agreement was negotiated and concluded. The Commission considered whether the agreement was genuinely negotiated and whether it contained terms that were reasonable in all the circumstances, including those relating to employee entitlements, working conditions, and dispute resolution mechanisms. The Commission also needed to ensure that the agreement was not contrary to the public interest, as required by section 231 of the Fair Work Act.

After thorough examination of the evidence and submissions presented, the Commission determined that the agreement was generally fair and appropriate. The Commission acknowledged that while there were some procedural shortcomings in the negotiation process, these did not undermine the overall fairness of the agreement. The Commission found that the terms of the agreement were reasonable in the context of the industry and the specific circumstances of the employees. Consequently, the Commission approved the enterprise agreement with some minor modifications to address identified concerns regarding procedural fairness. The decision reinforces the importance of ensuring that enterprise agreements are negotiated in a manner that upholds the principles of procedural fairness, while also recognising the need for practical and equitable outcomes for both employers and employees.

The Fair Work Commission's final orders included the approval of the enterprise agreement with certain amendments to the dispute resolution process and clarification of the negotiation procedures. These modifications were aimed at ensuring greater transparency and fairness in future negotiations. The decision underscores the Commission's commitment to balancing the interests of employers and employees, while also upholding the statutory requirements for the approval of enterprise agreements.

VIRIDIAN GLASS - VICTORIAN FACTORY AGREEMENT 2019

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established