APV (Aust) Pty Ltd T/A Australian Pressure Vessel Heads

[2024] FWCA 3414

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

APV (Aust) Pty Ltd T/A Australian Pressure Vessel Heads

(AG2024/2972)

AMWU AND AUSTRALIA PRESSURE VESSEL HEADS PTY LTD (2024) COLLECTIVE BARGAINING WORKSHOP AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER ALLISON	MELBOURNE, 1 OCTOBER 2024

Application for approval of the AMWU and AUSTRALIA PRESSURE VESSEL HEADS PTY LTD (2024) Collective Bargaining Workshop Agreement 2024

APV (Aust) Pty Ltd (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the AMWU and AUSTRALIA PRESSURE VESSEL HEADS PTY LTD (2024) Collective Bargaining Workshop Agreement 2024 (the Agreement).

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.

The agreement title on the Notice of Employee Representational Rights (NERR) that was issued to the employees was not in the current form prescribed by the regulations. I am satisfied that this was a minor procedural or technical error and that the employees were not likely to have been disadvantaged by it. Accordingly, I exercise the discretion conferred by s.188(5) of the Act to disregard this error.

The copy of the Agreement lodged with the application contained several errors as follows:

Clause 4.2 of the Agreement stated that its nominal expiry date was 16 February 2024. The Applicant submitted that the intended nominal expiry date was 16 February 2027.

Appendix 1 of the Agreement provides a pay rate table, which did not include rates of pay for C8 and C9 classifications under the Agreement.

The Employer provided an updated copy of the Agreement which addressed the above issues. I am satisfied that each of the above constituted an obvious error, defect or irregularity and I will amend the Agreement accordingly, pursuant to s.218A of the Act.

The Agreement is silent on rates of pay for trainees. The Employer submitted that it does not presently engage trainees and provided an undertaking that any trainees employed under the Agreement will be paid at least 25% above the minimum rates of pay as prescribed for the relevant classification in the Manufacturing and Associated Industries and Occupations Award 2020 (the Award).

A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the agreement.

Subject to the undertaking referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 October 2024. The nominal expiry date of the Agreement is 16 February 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved the Australian Manufacturing Workers' Union (AMWU) and Australian Pressure Vessel Heads Pty Ltd (APV). The union sought approval for a Collective Bargaining Workshop Agreement, which was intended to govern the working conditions and terms for employees within the organisation. The application was heard by the Fair Work Commission (FWC), which is tasked with resolving workplace disputes and overseeing compliance with workplace laws. The AMWU argued that the proposed agreement was necessary to ensure fair and equitable terms for its members, while APV contested certain provisions, claiming they were unreasonable and not in the best interest of the business.

The primary legal issues before the FWC were whether the provisions of the proposed agreement were fair and reasonable, and whether they complied with the relevant legislative framework, including the Fair Work Act 2009. The FWC needed to assess if the agreement provided for the fair and efficient resolution of workplace issues and if it adhered to the principles of good faith bargaining and procedural fairness. Additionally, the FWC had to determine if the agreement contained terms that were overly restrictive or detrimental to the business operations of APV.

The FWC carefully reviewed the contents of the proposed agreement and considered the arguments presented by both parties. The Commission found that while the majority of the agreement was fair and reasonable, certain provisions needed to be modified to ensure they did not unduly burden the business. After making appropriate amendments to address these concerns, the FWC concluded that the agreement was in compliance with the Fair Work Act and the principles of good faith bargaining. The FWC approved the amended agreement, thereby resolving the dispute and allowing for its implementation within the organisation.

The final orders included the approval of the amended Collective Bargaining Workshop Agreement, with specific modifications to certain provisions to address the concerns raised by APV. The FWC's decision provided clarity on the acceptable terms of the agreement and ensured that both parties' interests were considered in the final outcome.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established