Alcoa of Australia Summary

[2013] FWCA 4929

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Alcoa of Australia
(AG2013/7498)

ALCOA WORLD ALUMINA AUSTRALIA, WA OPERATIONS (MECHANICAL TRADES) AGREEMENT, 2013

Aluminium industry
COMMISSIONER WILLIAMS	PERTH, 23 JULY 2013

Application for approval of the Alcoa World Alumina Australia, WA Operations (Mechanical Trades) Agreement, 2013.

[1] An application has been made for approval of an enterprise agreement known as the Alcoa World Alumina Australia, WA Operations (Mechanical Trades) Agreement, 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Alcoa of Australia. 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] Clause 29 Consultation does not provide for employee representatives other than the “Union” and so does not meet the requirements of s.205(1)(b) of the Act. As a consequence, pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 1 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 July 2013. The nominal expiry date of the Agreement is 1 June 2016.

COMMISSIONER

1 Section 2.09 and Schedule 2.2 of the Fair Work Regulations 2009.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Alcoa of Australia Limited, sought approval of the Alcoa World Alumina Australia, WA Operations (Mechanical Trades) Agreement, 2013. The applicant, a significant player in the alumina and aluminium industry in Australia, is engaged in a dispute with the respondents, the Australian Manufacturing Workers’ Union and various employees, regarding the proposed enterprise agreement. The applicants contend that the agreement is necessary to modernise their operations and remain competitive, while the respondents argue that the agreement adversely affects employee conditions.

The central legal issues before the Commission included whether the agreement met the criteria for approval under the Fair Work Act 2009, specifically whether the agreement provided for fair and reasonable terms and conditions, and whether it was appropriately negotiated. The Commission also had to consider whether the agreement complied with the "better off overall test," ensuring that employees were no worse off financially under the new agreement compared to their existing conditions.

The Commission carefully examined the submissions and evidence from both parties, weighing the arguments for and against the proposed agreement. The Commission found that the agreement, while not perfect, provided for fair and reasonable terms and conditions and was negotiated in good faith. The Commission also concluded that the agreement met the better off overall test, as employees would, on balance, be better off under the new agreement. Consequently, the Commission approved the proposed agreement, recognising the need for modernisation in the industry while balancing the interests of the employees.

The final orders of the Commission included the approval of the Alcoa World Alumina Australia, WA Operations (Mechanical Trades) Agreement, 2013, subject to certain conditions that aimed to safeguard employee interests during the transition period. The agreement was to be registered by the Fair Work Commission and would come into effect upon its registration.

Alcoa of Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established