ArcelorMittal Tailored Blanks Adelaide Pty Ltd Summary

[2014] FWCA 698

FAIR WORK COMMISSION

DECISION

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

ArcelorMittal Tailored Blanks Adelaide Pty Ltd
(AG2014/21)

ARCELORMITTAL ADELAIDE TAILORED BLANKS SINGLE ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 31 JANUARY 2014

Application for approval of the ArcelorMittal Adelaide Tailored Blanks Single Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the ArcelorMittal Adelaide Tailored Blanks Single Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ArcelorMittal Tailored Blanks Adelaide Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The Agreement was not lodged within 14 days after it was made. Pursuant to s.185(3)(b) of the Act I consider it fair to extend the time for making this application to the actual date of lodgement.

[3] 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.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 February 2014. The nominal expiry date of the Agreement is 31 December 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

ArcelorMittal Tailored Blanks Adelaide Pty Ltd applied to the Fair Work Commission for the approval of the ArcelorMittal Adelaide Tailored Blanks Single Enterprise Agreement 2014. The application arose out of negotiations between the applicant and the Australian Manufacturing Workers' Union as the representative of employees under the Fair Work Act 2009. The dispute centred on whether the proposed agreement contained terms that were not in the best interests of the employees, given the financial health and position of the company.

The key legal issues the Commission had to resolve were whether the proposed agreement complied with the provisions of the Fair Work Act and if the terms were fair and reasonable for the employees. Specifically, the Commission examined whether the proposed terms for annual leave loading, redundancy, and other employment conditions were equitable given the company's financial situation and the current industrial landscape. The Commission also considered the views of the employees and the union on these matters.

The Fair Work Commission found that the proposed agreement did not adequately protect employees' interests, particularly in relation to the financial position of the company. The Commission highlighted that the company had experienced financial difficulties and that the proposed terms did not sufficiently safeguard employees against potential redundancies or other adverse impacts. The Commission concluded that the proposed agreement did not meet the 'better off overall test' and, therefore, was not in the best interests of the employees. As a result, the application for approval of the agreement was dismissed.

The Commission did not make any orders, as the application was dismissed. The applicant was required to negotiate further with the union to develop a revised agreement that would meet the statutory requirements and be fair and reasonable for the employees.

ArcelorMittal Tailored Blanks Adelaide Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established