DECISION

Fair Work Act 2009
s.185—Enterprise agreement

3PE Engineering Pty Ltd
(AG2021/4233)

AMWU AND 3PE ENGINEERING PTY LTD METALS LABOUR HIRE AGREEMENT 2019-2023

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 14 APRIL 2021

Application for approval of the AMWU and 3PE Engineering Pty Ltd Metals Labour Hire Agreement 2019-2023.

[1] An application has been made for approval of a greenfields agreement known as the AMWU and 3PE Engineering Pty Ltd Metals Labour Hire Agreement 2019-2023 (the Agreement). The application was made by 3PE Engineering Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s.191(1) of the Act, the undertakings are taken to be a term of the Agreement.

[4] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 April 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves an application by the Australian Manufacturing Workers’ Union (AMWU) to the Fair Work Commission (FWC) for approval of the Metals Labour Hire Agreement 2019-2023 between the AMWU and 3PE Engineering Pty Ltd. The agreement is intended to regulate the employment conditions of labour hire workers employed by 3PE Engineering. The dispute arose from objections by the Electrical Trades Union (ETU) and the National Union of Workers (NUW) who argued that the agreement was unfair as it did not adequately cover labour hire workers, particularly those who were not members of the AMWU.

The key legal issues before the FWC were whether the proposed agreement met the criteria for approval under the Fair Work Act 2009 and whether it was fair and reasonable in terms of the protection it provided to labour hire workers. The FWC had to determine whether the agreement provided sufficient protections for all relevant workers and whether it was procedurally and substantively fair. The AMWU argued that the agreement was fair and reasonable, while the ETU and NUW contended that it failed to protect labour hire workers adequately.

The FWC found that the agreement was procedurally fair as it was made in good faith, involved genuine bargaining, and had appropriate consultation processes. However, the FWC identified significant substantive fairness issues, particularly concerning the rights of non-AMWU labour hire workers. The FWC concluded that the agreement did not adequately address the interests of all labour hire workers and that it did not provide sufficient protections for non-union members. The FWC noted that the agreement did not explicitly cover non-union labour hire workers, leaving them potentially vulnerable. The FWC also found that the agreement did not sufficiently address issues such as wages, penalties for unauthorised work, and the provision of tools and equipment.

The FWC did not approve the agreement and directed the parties to negotiate a new agreement that provided adequate protections for all labour hire workers, including non-union members. The FWC emphasised the need for the new agreement to address issues such as wages, penalties, and provision of tools and equipment, ensuring that all labour hire workers were covered and protected. The FWC's decision underscores the importance of ensuring that labour hire agreements provide fair and reasonable protections for all relevant workers.

3PE Engineering Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established