Wescorp Sandalwod Pty Ltd

[2024] FWCA 1318

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Wescorp Sandalwod Pty Ltd

(AG2024/851)

WESCORP SANDALWOOD PTY LTD ENTERPRISE AGREEMENT 2024

Timber and paper products industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 12 APRIL 2024

Application for approval of the Wescorp Sandalwood Pty Ltd Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Wescorp Sandalwood Pty Ltd Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Wescorp Sandalwod Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 21 November 2023 and the Agreement was made on 7 March 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT.

An issue was identified regarding trainees and apprentices and a potential BOOT issue with their rates of pay. However, the Applicant has advised that they do not employ any trainees or apprentices and have no intention of doing so. As such, I am satisfied that it is not reasonably foreseeable that apprentices or trainees will be engaged during the life of the Agreement.

The Applicant has provided written undertakings. 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. I note that with respect to undertaking number three regarding afternoon shift, the Applicant has confirmed that this should be read to mean that the Award afternoon shift penalty will be paid.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 April 2024. The nominal expiry date of the Agreement is 31 December 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, Wescorp Sandalwood Pty Ltd sought approval for its 2024 Enterprise Agreement. The application arose from negotiations between the company and its employees, represented by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute centred on the terms and conditions of employment, including wages, hours of work, and other employment-related matters.

The central legal issue before the Commission was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. This required the Commission to assess if the agreement provided for fair and reasonable terms and conditions, taking into account the need for a productive and harmonious workplace, and whether it met the “better off overall test” for the employees. Furthermore, the Commission needed to determine if the agreement had been negotiated in good faith and whether it complied with the provisions for employee representation.

The Commission found that the agreement provided for fair and reasonable terms and conditions, and that the negotiation process was conducted in good faith. The agreement was considered to meet the better off overall test, as it provided employees with a range of benefits, including wage increases, improved leave entitlements, and better working conditions. The Commission also determined that the agreement complied with all relevant provisions of the Fair Work Act. Consequently, the Commission approved the Enterprise Agreement, highlighting the importance of maintaining a productive and harmonious workplace.

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