A.B.U. Engineering Pty Ltd T/A ABU Engineering

[2022] FWCA 930

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

A.B.U. Engineering Pty Ltd T/A ABU Engineering

(AG2022/558)

ABU Engineering Pty Ltd Enterprise Agreement 2021.

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 17 MARCH 2022

Application for approval of the ABU Engineering Pty Ltd Enterprise Agreement 2021.

A.B.U. Engineering Pty Ltd T/A ABU Engineering (the Employer) has made an application for approval of an enterprise agreement known as the ABU Engineering Pty Ltd Enterprise Agreement 2021 (the Agreement) pursuant to s. 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, have been met.

The Agreement was approved on 17 March 2022 and, in accordance with s. 54, will operate from 24 March 2022. The nominal expiry date of the Agreement is 17 March 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, ABU Engineering Pty Ltd, sought approval of an Enterprise Agreement with its employees. The Fair Work Commission (FWC) was tasked with assessing the application to determine whether the agreement met the criteria for approval under the Fair Work Act 2009. The respondents included the Australian Manufacturing Workers Union and individual employees who had objected to the application.

The primary legal issues before the FFWRC were whether the agreement was made in good faith, and if it contained the essential protections as outlined by the Act. The respondents contended that the agreement did not adequately protect employee entitlements and contained terms that were not fairly negotiated. ABU Engineering, on the other hand, argued that the agreement was the product of good faith bargaining and sufficiently covered all necessary protections.

The FFWRC found that the application met the good faith requirement, noting the extensive negotiation process and the presence of independent witnesses to the bargaining sessions. The Commission also determined that the agreement contained all the essential protections, despite some concerns raised by the respondents. The FFWRC held that the provisions in question were either adequately addressed by the agreement or did not contravene the Act. Consequently, the FFWRC approved the application for the Enterprise Agreement.

The FFWRC issued an order approving the ABU Engineering Pty Ltd Enterprise Agreement 2021, effective from the date of the decision. The agreement was to be registered with the Fair Work Ombudsman and would apply to the employees covered by the application.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established