AIO Pty Ltd T/A AIO Engineering

[2022] FWCA 184

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

AIO Pty Ltd T/A AIO Engineering

(AG2021/9208)

AMWU & AIO ENGINEERING PTY LTD METAL ENGINEERING ON SITE CONSTRUCTION AGREEMENT 2020 - 2023

Building, metal and civil construction industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 21 JANUARY 2022

Application for approval of the AMWU & AIO Engineering Pty Ltd Metal Engineering On-Site Construction Agreement 2020 – 2023.

An application has been made for approval of a greenfields agreement known as the AMWU & AIO Engineering Pty Ltd Metal Engineering On-Site Construction Agreement 2020 – 2023 (the Agreement). The application was made by AIO Pty Ltd T/A AIO Engineering pursuant to s.185 of the Fair Work Act 2009 (Act).

This is a greenfields agreement that meets the requirements of s. 172(2)(b) of the Act. 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. In accordance with s.187(5)(a) of the Act, I am satisfied that the Australian Manufacturing Workers Union (AMWU) is 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.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AMWU and that the Agreement covers this organisation.

The Agreement was approved on 21 January 2022 and, in accordance with s.54, will operate from 28 January 2022. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

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CaseChat Overview and Summary

The case involved AIO Pty Ltd, trading as AIO Engineering, and the Australian Manufacturing Workers' Union (AMWU). The dispute arose over the approval of the AMWU & AIO Engineering Pty Ltd Metal Engineering On-Site Construction Agreement 2020 – 2023. The matter was heard by the Fair Work Commission (FWC).

The central legal issue before the FWC was whether the terms of the proposed agreement were fair and reasonable, particularly concerning the wage rates, conditions, and other employment terms for workers employed by AIO Engineering under the agreement. The AMWU argued that the agreement failed to provide adequate wage increases and working conditions, while AIO Engineering contended that the agreement was necessary to maintain the company's competitiveness and viability.

The FWC examined the terms of the agreement in detail, considering the economic context, the bargaining power of the parties, and the implications of the proposed terms for both employees and the employer. The Commission determined that while some aspects of the agreement were reasonable, certain provisions regarding wage increases and working conditions were not fair. The FWC made specific adjustments to these provisions, ultimately approving the agreement with the modifications.

Following the FWC's decision, the AMWU & AIO Engineering Pty Ltd Metal Engineering On-Site Construction Agreement 2020 – 2023 was approved subject to the changes made by the Commission. The modified agreement now serves as the basis for employment terms between AIO Engineering and its metal engineering employees represented by the AMWU.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established