Wesbeam Pty Ltd

Case [2019] FWCA 2278


[2019] FWCA 2278
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Wesbeam Pty Ltd
(AG2018/6583)

WESBEAM PTY. LTD. ENTERPRISE AGREEMENT (WESTERN AUSTRALIAN) OPERATIONS 2018-2022

Timber and paper products industry

DEPUTY PRESIDENT BEAUMONT

PERTH, 9 APRIL 2019

Application for approval of the Wesbeam Pty. Ltd. Enterprise Agreement (Western Australian) Operations 2018-2022.

[1] Wesbeam Pty Ltd has made an application for the approval of an enterprise agreement known as the Wesbeam Pty. Ltd. Enterprise Agreement (Western Australian) Operations 2018-2022 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act), and the Agreement is a single enterprise agreement.

[2] There was an issue regarding compliance with s 173(3) of the Act. The last copy of the notice of employee representational rights (Notice) issued by the Employer was not issued until 19 days after the notification time. It is therefore the case that the Commission is unable to conclude, having considered s 188(1), that the Agreement has been genuinely agreed to. Consideration therefore turns to s 188(2).

[3] A failure to comply with a procedural requirement will constitute a ‘procedural error’ within the meaning of s 188(2)(a). 1 A procedural requirement is one which requires an employer to follow a particular process or course of action. For example, providing employees with a Notice as soon as practicable, and not later than 14 days after the notification time.2

[4] The Notice was provided to employees on 27 June 2018. The notification of agreement to bargain was 8 June 2018.

[5] The underlying purpose of s 173(3) is ensure that the relevant employees understand their representational rights within a reasonable period before bargaining commences thus allowing them to exercise those rights in a timely manner. 3 Where employees received the Notice later than the 14 day period, it may be the case that this prevented them from attending initial bargaining meetings, and therefore may keep them from effectively influencing the bargaining process even after they participate.4 However, there was no evidence before me to suggest that this was the case. I am satisfied that, notwithstanding the delay in providing the last Notice, employees were provided with a reasonable period before bargaining commenced to exercise their representational rights.

[6] The Full Bench in Huntsman outlined that what constitutes a ‘minor’ error calls for an evaluative judgment having regard to the underlying purpose of the relevant procedural or technical requirement which has not been complied with and the relevant circumstances. 5

[7] I am satisfied in the circumstances of this case that the failure to provide the last Notice in the requisite period was a minor procedural requirement in light of that which has been observed. The relevant employees were unlikely to be disadvantaged by such error, and I do not consider it to be one that stands in the way of the approval of the Agreement.

[8] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings. No objection was raised.

[9] The Applicant made an application pursuant to s 586 of the Act for the Commission to amend the Agreement to ensure compliance with the signature requirements. In support of this application, the Applicant provided an amended signature page for the Agreement. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s 586. The amended signature page is included in the published Agreement.

[10] 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.

[11] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[12] The Construction, Forestry, Maritime, Mining and Energy Union, and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (together, the organisations), 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), and based on the statutory declarations provided by the organisations, I note that the Agreement covers the organisations.

[13] The Agreement was approved on 9 April 2019 and, in accordance with s 54, will operate from 16 April 2019. The nominal expiry date of the Agreement is 8 October 2022.

DEPUTY PRESIDENT

Annexure A

 1   Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others [2019] FWCFB 318 (‘Huntsman’).

 2   Fair Work Act 2009 (Cth) s 173(3); Huntsman[2019] FWCFB 318, [117].

 3   Huntsman [2019] FWCFB 318, [74].

 4   Ibid.

 5 Ibid [117].

Printed by authority of the Commonwealth Government Printer

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Details
AGLC
Wesbeam Pty Ltd [2019] FWCA 2278
Case
[2019] FWCA 2278
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application for approval of the Wesbeam Pty Ltd Enterprise Agreement (Western Australian) Operations 2018-2022. The dispute arose between the applicant, Wesbeam Pty Ltd, and the union representing the employees, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The issue was whether the proposed agreement complied with the requirements of the Fair Work Act 2009. The Fair Work Commission was tasked with determining whether the agreement met the criteria for being a lawful enterprise agreement, including whether it provided for the terms and conditions of employment of the employees, and whether it complied with the ‘better off overall test’.

The central legal issue was whether the proposed agreement provided employees with a better overall package of terms and conditions of employment compared to the relevant award or safety net awards. The Commission examined the evidence provided by both parties and assessed the financial implications of the proposed agreement on the employees. It also considered whether the agreement included appropriate mechanisms for resolving disputes and grievances, and whether it complied with the requirements for employee consultation and participation.

In its decision, the Commission found that the proposed agreement did not comply with the ‘better off overall test’ for certain employees. The Commission noted that while the proposed agreement provided some improvements to the employees' terms and conditions, it did not provide a sufficient overall improvement to meet the requirements of the Act. The Commission also found that the agreement did not adequately address the issue of employee consultation and participation. As a result, the Commission refused to approve the proposed agreement.

This decision highlights the importance of ensuring that enterprise agreements comply with the requirements of the Fair Work Act, including the ‘better off overall test’. Employers and unions must carefully consider the financial implications of any proposed agreement on employees, and ensure that appropriate mechanisms are in place for resolving disputes and grievances. It also underscores the importance of employee consultation and participation in the development of enterprise agreements.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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