Alstom Limited Summary

[2014] FWCA 3931

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Alstom Limited
(AG2014/1360)

ALSTOM LIMITED SOUTH WESTERN AUSTRALIA MAINTENANCE AND REFURBISHMENT WORKPLACE AGREEMENT 2014

Manufacturing and associated industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 20 JUNE 2014

Application for approval of the ALSTOM Limited South Western Australia Maintenance and Refurbishment Workplace Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the ALSTOM Limited South Western Australia Maintenance and Refurbishment Workplace 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 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this matter, Alstom Limited sought approval of the Alstom Limited South Western Australia Maintenance and Refurbishment Workplace Agreement 2014 from the Fair Work Commission. The dispute arose from negotiations between the applicant and the Australian Manufacturing Workers' Union, which led to the creation of the agreement in question. The application for approval was made under the Fair Work Act 2009.

The primary legal issue before the court was whether the agreement met the requirements of section 234 of the Fair Work Act 2009, which outlines the criteria for a workplace agreement to be considered a "better off overall" agreement. The court had to determine if the agreement provided employees with a minimum safety net that was not less favourable than the relevant industrial instrument, and whether it offered a minimum rate of pay and conditions that were at least equivalent to those set by the Fair Work Act or an applicable award.

The Fair Work Commission examined the terms of the agreement and the evidence presented by both parties. The Commission found that the agreement provided for a minimum safety net that met the statutory requirements and ensured employees were not worse off than under the relevant industrial instrument. Furthermore, the agreement offered a minimum rate of pay and conditions that were not less favourable than those provided by the Fair Work Act or applicable award. Consequently, the Commission approved the Alstom Limited South Western Australia Maintenance and Refurbishment Workplace Agreement 2014, finding that it met the criteria for a "better off overall" agreement.

In light of the approval, the Commission made an order that the agreement was to be registered and enforceable under the Fair Work Act 2009. The agreement, which was to be effective from the date of the decision, was to be treated as a registered agreement for all purposes under the Act. This decision ensured that the terms of the agreement would be legally binding on the parties involved and would govern their industrial relations for the duration of the agreement.

Alstom Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established