AGC Industries Pty Ltd T/A AGC Summary

[2014] FWCA 7158

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

AGC Industries Pty Ltd T/A AGC
(AG2014/9127)

AGC INDUSTRIES PTY LTD SOUTH AUSTRALIA MAINTENANCE SERVICES GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 9 OCTOBER 2014

Application for approval of the AGC Industries Pty Ltd South Australia Maintenance Services Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the AGC Industries Pty Ltd South Australia Maintenance Services Greenfields Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the AGC Industries Pty Ltd T/A AGC. The Agreement is a Greenfields agreement.

[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), which I note will be covered by the Agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 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 the AMWU are 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 October 2014. The nominal expiry date of the Agreement is 31 December 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of AGC Industries Pty Ltd trading as AGC, the applicant sought approval from the Fair Work Commission for the AGC Industries Pty Ltd South Australia Maintenance Services Greenfields Agreement 2014. The applicant, a company engaged in the supply of concrete and precast concrete products, entered into this agreement with a group of its employees, represented by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute arose from the negotiation and subsequent approval of this enterprise agreement, which aimed to regulate the terms and conditions of employment for the specified group of employees.

The central legal issue before the Commission was whether the agreement met the statutory requirements under the Fair Work Act 2009. This involved determining if the agreement had been made in good faith, if it contained the appropriate minimum terms and conditions, and if the process by which it was made adhered to the necessary procedural standards. Furthermore, the Commission had to ensure that the agreement did not undermine the protection of employees' rights and did not negatively impact the broader industrial relations system.

After reviewing the submissions and evidence presented by both parties, the Fair Work Commission found that the agreement had been made in good faith and contained all the required minimum terms and conditions. The Commission was satisfied that the negotiation process was fair and that the agreement did not have an adverse effect on the broader industrial relations system. Consequently, the Commission approved the AGC Industries Pty Ltd South Australia Maintenance Services Greenfields Agreement 2014, deeming it to be compliant with the relevant provisions of the Fair Work Act 2009. As a result, the agreement was registered, and the employees covered by it were bound by its terms.

AGC Industries Pty Ltd T/A AGC

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established