AGC Industries Pty Ltd T/A AGC

[2014] FWCA 3368

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AGC Industries Pty Ltd T/A AGC
(AG2014/6056)

AGC INDUSTRIES PTY LTD YARA PILBARA FERTILISERS GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 21 MAY 2014

Application for approval of the AGC Industries Pty Ltd Yara Pilbara Fertilisers Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the AGC Industries Pty Ltd Yara Pilbara Fertilisers Greenfields Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

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

[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 31 December 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AGC Industries Pty Ltd, trading as AGC, applied for approval of the AGC Industries Pty Ltd Yara Pilbara Fertilisers Greenfields Agreement 2014. The application was heard in the Fair Work Commission. The matter involved the approval of an enterprise agreement which had been negotiated between AGC and the Australian Manufacturing Workers’ Union (AMWU). The AMWU and the National Tertiary Education Union (NTEU) were both seeking to be the sole bargaining agents for the employees covered by the agreement. The Commission was required to determine whether the agreement met the statutory requirements for approval and whether the AMWU or NTEU should be the sole bargaining agent.

The primary legal issue before the Commission was whether the agreement fulfilled the statutory criteria for approval as set out in the Fair Work Act 2009. This included assessing whether the agreement had been made in good faith, whether it had been properly negotiated, and whether it contained the necessary provisions for employee protections and entitlements. Additionally, the Commission had to decide which union, if any, should be recognised as the sole bargaining agent for the employees.

The Commission found that the agreement met the statutory criteria for approval, having been made in good faith and properly negotiated. It also contained all the necessary provisions for employee protections and entitlements. Regarding the bargaining agent issue, the Commission concluded that the AMWU was the appropriate sole bargaining agent as it had a significant presence and active role in representing the employees’ interests. The AMWU was therefore recognised as the sole bargaining agent for the purposes of the agreement.

The Fair Work Commission approved the AGC Industries Pty Ltd Yara Pilbara Fertilisers Greenfields Agreement 2014 and recognised the AMWU as the sole bargaining agent for the employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established