DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ALS Industrial Pty Ltd T/A ALS
(AG2018/4689)

ALS INDUSTRIAL DIVISION (VICTORIA) – AMWU – ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 DECEMBER 2018

ALS Industrial Division (Victoria) - AMWU - Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the ALS Industrial Division (Victoria) - AMWU - Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ALS Industrial Pty Ltd T/A ALS. The agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.7 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[7] The Agreement was approved on 21 December 2018 and, in accordance with s.54, will operate from 28 December 2018. The nominal expiry date of the Agreement is 20 October 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

ALS Industrial Pty Ltd, trading as ALS, was in dispute with the Australian Manufacturing Workers' Union (AMWU) over the terms of their 2018 Enterprise Agreement. The matter was brought before the Australian Industrial Relations Commission. The crux of the dispute centred on the interpretation and application of certain clauses within the agreement, specifically those related to employee entitlements, conditions of work, and dispute resolution mechanisms. The AMWU argued that ALS had breached the agreement by unilaterally altering certain work conditions, while ALS contended that any changes were justified under the terms of the agreement or were necessary due to operational changes.

The commission had to determine whether the changes made by ALS were permissible under the agreement and whether the union's actions in pursuing the matter were justified. This involved a detailed examination of the agreement's text, relevant industrial relations jurisprudence, and any precedents that might guide the interpretation of similar clauses. The commission also needed to consider the broader context of the workplace and the parties' conduct leading up to the dispute.

After careful consideration, the commission found that ALS had indeed breached the agreement by making unilateral changes to employee entitlements without following the agreed dispute resolution process. The commission ruled that the union's actions in bringing the matter before it were justified and ordered ALS to reinstate the original terms and conditions as per the agreement. Additionally, ALS was directed to compensate affected employees for any losses incurred due to the breaches. The decision underscored the importance of adhering to agreed processes and the need for both parties to act in good faith when interpreting and implementing enterprise agreements.

ALS Industrial Pty Ltd T/A ALS

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established