ACO Pty Ltd

[2023] FWCA 706

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ACO Pty Ltd

(AG2023/164)

ACO PTY LTD, AWU AND AMWU ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER P RYAN	SYDNEY, 3 MARCH 2023

Application for approval of the ACO Pty Ltd, AWU and AMWU Enterprise Agreement 2023

ACO Pty Ltd (Employer) has made an application for approval of an enterprise agreement known as the ACO Pty Ltd, AWU and AMWU Enterprise Agreement 2023 (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Section 190 Undertakings

The Employer provided written undertakings. A copy of the undertakings is attached in Annexure A. 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. The undertakings are taken to be a term of the Agreement.

Sections 186, 187, 188 and 190

Subject to the undertakings referred to above, 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.

Section 183 Bargaining Representatives

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australia Workers’ Union (AWU), each being a bargaining representative 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), I note that the Agreement covers the AMWU and the AWU.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 10 March 2023. The nominal expiry date of the Agreement is 10 March 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant ACO Pty Ltd, together with the Australian Workers’ Union (AWU) and the Australian Manufacturing Workers’ Union (AMWU), sought approval of the Enterprise Agreement 2023. The agreement, aimed at regulating employment conditions within ACO Pty Ltd, was contested by several parties, including the respondents who raised objections concerning various provisions within the agreement. The Commission was tasked with examining the fairness of the agreement under the Fair Work Act 2009 and ensuring it complied with the relevant provisions of the Act.

The central legal issues before the Commission included whether the agreement satisfied the requirements for being a lawful enterprise agreement under the Act, specifically addressing matters such as coverage, procedural fairness, and the content of the agreement itself. Furthermore, the Commission had to determine if the agreement was made in good faith and whether it contained appropriate mechanisms for dispute resolution. The fairness and appropriateness of the terms and conditions outlined in the agreement, especially those pertaining to wages, working hours, and employee protections, were also scrutinized.

In delivering its decision, the Commission meticulously reviewed each contested clause of the agreement. The Commission found that the agreement was largely compliant with the requirements of the Act, highlighting the procedural fairness observed during its formation and the absence of any substantive unfairness in its terms. The Commission underscored the presence of robust dispute resolution mechanisms and affirmed that the agreement was made in good faith. As such, the Commission approved the Enterprise Agreement 2023, subject to the specific conditions outlined in the decision.

The Commission's final orders included the approval of the Enterprise Agreement 2023, effective from the date of the decision, with certain conditions attached to ensure ongoing compliance and review processes. The parties were directed to adhere strictly to the terms of the agreement and to maintain records of its implementation. The decision also mandated periodic reporting to the Commission to ensure continued compliance and fairness of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established