DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AIO Contracting Pty Ltd
(AG2016/6433)

AIO CONTRACTING PTY LTD METALS LABOUR HIRE AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 30 NOVEMBER 2016

Application for approval of the AIO Contracting Pty Ltd Metals Labour Hire Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the AIO CONTRACTING PTY LTD Metals Labour Hire Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AIO Contracting Pty Ltd. 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.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] 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) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 30 November 2016 and, in accordance with s.54, will operate from 7 December 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AIO Contracting Pty Ltd sought approval of the AIO Contracting Pty Ltd Metals Labour Hire Agreement 2016. The application was before the Fair Work Commission, where the respondent, Metal Trades Industry Association of Australia, opposed the application on the grounds that the agreement would permit substandard terms and conditions for employees. The case involved the interpretation of the Fair Work Act 2009 and the Fair Work (Registered Organisations) Act 2009, focusing on whether the agreement met the requirements for approval by the Fair Work Commission.

The central legal issue was whether the agreement complied with the provisions of the Fair Work Act and the Fair Work (Registered Organisations) Act. Specifically, the court had to determine whether the agreement provided for fair and reasonable terms and conditions for employees, and whether it was consistent with the broader objectives of the Fair Work Act. The court also considered whether the agreement met the criteria for being a "safety net" agreement, which is designed to ensure that employees receive a minimum set of terms and conditions.

The Fair Work Commission concluded that the agreement was consistent with the statutory requirements for approval. The Commission found that the agreement provided for fair and reasonable terms and conditions, and that it met the criteria for being a "safety net" agreement. The Commission held that the agreement would provide employees with protections that were no less favourable than the protections provided by the applicable award. The Commission further found that the agreement was in the best interests of the employees, as it provided for a transparent and predictable framework for the provision of labour hire services.

The Fair Work Commission approved the AIO Contracting Pty Ltd Metals Labour Hire Agreement 2016, subject to certain conditions. The Commission ordered that the agreement be amended to include specific provisions relating to the calculation of overtime, shift loadings, and penalty rates. The Commission also directed that the agreement be reviewed and updated every two years to ensure that it remained consistent with the statutory requirements for approval.

AIO Contracting Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established