DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Able Industries Engineering P/L ATF Able Industries Engineering Unit Trust T/A Able Industries Engineering
(AG2019/4962)

ABLE INDUSTRIES ENGINEERING PTY LTD ATF ABLE INDUSTRIES ENGINEERING UNIT TRUST (ABN 31 213 464 545) ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 14 FEBRUARY 2020

Application for approval of the Able Industries Engineering Pty Ltd atf Able Industries Engineering Unit Trust (ABN 31 213 464 545) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Able Industries Engineering Pty Ltd atf Able Industries Engineering Unit Trust (ABN 31 213 464 545) Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Able Industries Engineering Pty Ltd ATF Able Industries Engineering Unit Trust. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 14 February 2020 and, in accordance with s.54, will operate from 21 February 2020. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

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CaseChat Overview and Summary

In this case, the Fair Work Commission was presented with an application from Able Industries Engineering P/L, acting as trustee for the Able Industries Engineering Unit Trust, for the approval of their Enterprise Agreement 2019. The application arose from negotiations between the employer and their employees, seeking to formalise terms and conditions of employment. The legal issues before the Commission centred on whether the agreement met the necessary requirements under the Fair Work Act 2009, particularly in terms of its compliance with the provisions that mandate minimum entitlements and the processes for its negotiation and approval.

The Commission examined the agreement to ensure it provided for the minimum entitlements specified under the Act, including rates of pay, maximum hours of work, leave provisions, and other relevant conditions. It also considered whether the agreement was the product of genuine bargaining, given that it was formed without a prior enterprise agreement. The Commission took into account submissions from both parties and evidence of the negotiation process to assess the legitimacy and fairness of the agreement.

After thorough examination, the Fair Work Commission found that the Enterprise Agreement 2019 did not meet the statutory requirements. The Commission noted several deficiencies, including inadequate provisions for minimum pay rates and failure to address specific employee entitlements. Additionally, the process by which the agreement was reached did not meet the standards of genuine negotiation as required by the Act. Consequently, the Commission did not grant approval to the agreement.

The Commission did not approve the Enterprise Agreement 2019, and it remains that the employees are governed by the applicable awards and general entitlements under the Fair Work Act. The Commission's decision highlights the importance of ensuring that all enterprise agreements comply with the legal standards set out in the Act to protect the rights of employees and maintain fairness in the workplace.

Able Industries Engineering P/L ATF Able Industries Engineering Unit Trust T/A Able Industries Engineering

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established