AGC Industries Pty Ltd T/A AGC

[2014] FWCA 4073

FAIR WORK COMMISSION

DECISION

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

AGC Industries Pty Ltd T/A AGC
(AG2014/6350)

AGC INDUSTRIES PTY LTD KWINANA FABRICATION FACILITY (AMWU) AGREEMENT 2014-2017

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 20 JUNE 2014

Application for approval of the AGC Industries Pty Ltd Kwinana Fabrication Facility (AMWU) Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the AGC Industries Pty Ltd Kwinana Fabrication Facility (AMWU) Agreement 2014-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), 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) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is 30 June 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case were AGC Industries Pty Ltd, trading as AGC, and the Australian Manufacturing Workers’ Union (AMWU). The dispute centred on the approval of the AGC Industries Pty Ltd Kwinana Fabrication Facility Agreement 2014-2017. The case was heard in the Fair Work Commission (FWC), which is responsible for overseeing and approving enterprise agreements under the Fair Work Act 2009 (Cth). The AMWU contested the agreement, arguing that it did not meet the requirements for approval under the Fair Work Act.

The key legal issues the FWC had to decide were whether the agreement was made in good faith, whether it complied with the procedural fairness requirements, and whether it met the criteria for approval under the Fair Work Act. The AMWU argued that the agreement was not made in good faith as it did not reflect the true bargaining intentions of AGC and that there were procedural shortcomings during the bargaining process. Additionally, the union claimed that certain provisions in the agreement did not comply with the Fair Work Act's substantive fairness requirements.

The FWC found that the agreement was made in good faith and that the procedural fairness requirements were met. The Commission emphasised that it was not its role to determine the substantive fairness of the agreement, but rather to ensure that the process of making the agreement was fair. The FWC concluded that there were no procedural irregularities and that the agreement complied with the necessary statutory requirements. Consequently, the FWC approved the AGC Industries Pty Ltd Kwinana Fabrication Facility Agreement 2014-2017.

As a result of the FWC's decision, the AGC Industries Pty Ltd Kwinana Fabrication Facility Agreement 2014-2017 was approved and became legally binding between AGC and the AMWU. The union's objections were dismissed, and the agreement was deemed to be valid under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established