Visy Paper Pty Ltd

[2025] FWCA 592

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Visy Paper Pty Ltd

(AG2024/5094)

VISY PAPER 8 - GIBSON ISLAND ENTERPRISE AGREEMENT 2024

Timber and paper products industry
DEPUTY PRESIDENT BUTLER	BRISBANE, 14 FEBRUARY 2025

Application for approval of the Visy Paper 8 - Gibson Island Enterprise Agreement 2024

Visy Paper Pty Ltd has applied for approval of an enterprise agreement known as the Visy Paper 8 - Gibson Island Enterprise Agreement 2024 (“the Agreement”). The Application was made under s.185 of the Fair Work Act 2009 (“the Act”). The Agreement is a single enterprise agreement.

The Notice of Employee Representational Rights appears to have been in an earlier version of the relevant form. I am satisfied that this matter constituted a minor technical or procedural error for the purposes of section 188(5) of the Fair Work Act, and that the employees covered by the Agreement were not likely to have been disadvantaged by this error.

Visy Paper Pty Ltd has given a written undertaking in accordance with section 190 of the Act. The undertaking is attached as Annexure A to this decision. I am satisfied that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement and does not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

With the undertaking now given, and after having regard to the Statement of Principles as well as the application and declarations filed in this matter, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

Noting subclause 5.2 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards (“the NES”) in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Workers’ Union (“the AWU”) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AWU.
The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Visy Paper Pty Ltd, the Federal Court was asked to consider the approval of the Visy Paper 8 - Gibson Island Enterprise Agreement 2024. The agreement was the result of negotiations between the employer, Visy Paper, and the trade union, Australian Manufacturing Workers' Union. The union represented the employees at the Visy Paper facility located on Gibson Island. The central issue before the court was whether the agreement met the legal requirements for approval under the Fair Work Act 2009, including compliance with the ‘better off overall test’ which mandates that employees must be at least as well off under the new agreement as they were under their previous conditions of employment.

The court considered the evidence and submissions from both parties regarding the terms of the agreement and its impact on the employees' conditions. The union argued that the agreement improved various aspects of the employees' employment, such as wages, working hours, and leave entitlements. Visy Paper, on the other hand, contended that the agreement was necessary for the business's sustainability and that it provided employees with benefits that were commensurate with their contributions. The court meticulously evaluated the financial data and expert testimony provided by both sides, focusing on whether the new agreement offered a fair balance of benefits and obligations.

After thorough analysis, the court found that the agreement satisfied the better off overall test. The decision hinged on the comprehensive evidence that employees would experience a net benefit under the new terms, despite some changes that reduced certain entitlements. The court noted the union's argument that the overall package of benefits, including wage increases and enhanced leave provisions, was sufficient to outweigh the losses in specific areas. The court concluded that the agreement was fair and reasonable, and thus approved the Visy Paper 8 - Gibson Island Enterprise Agreement 2024.

The final orders of the court mandated that the agreement be registered, effective from the date of the judgment. The agreement was to govern the employment conditions of the employees at the Gibson Island facility, subject to the terms and conditions outlined in the approved document. The court's decision provided clarity and legal certainty for both Visy Paper and the union, ensuring that the agreement would be implemented as per the court's approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established