Ausco Modular Pty Ltd

[2024] FWCA 850

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ausco Modular Pty Ltd

(AG2024/425)

AUSCO MODULAR PTY LTD EDINBURGH NORTH ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 8 MARCH 2024

Application for approval of the Ausco Modular Pty Ltd Edinburgh North Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Ausco Modular Pty Ltd Edinburgh North Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ausco Modular Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 6 July 2023 and the Agreement was made on 8 February 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

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

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

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 is approved and, in accordance with s.54 of the Act, will operate from 15 March 2024. The nominal expiry date of the Agreement is 15 March 2027.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application for the approval of the Ausco Modular Pty Ltd Edinburgh North Enterprise Agreement 2023, brought before the Fair Work Commission (FWC). The applicant, Ausco Modular Pty Ltd, sought to have the agreement approved under the Fair Work Act 2009, and the application was contested by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred around whether the agreement contained the necessary provisions for fair and reasonable terms and conditions of employment as required by the Act.

The central legal issues before the FWC were whether the agreement was made in good faith and whether it contained the minimum terms and conditions mandated by the Act. The FWC had to determine whether the agreement was fair and reasonable, considering the interests of both the employer and the employees. Additionally, the FWC needed to assess if the agreement sufficiently covered essential terms and conditions, such as wages, hours of work, and other employment-related matters.

The FWC found that the agreement met the requirements set out in the Fair Work Act. The Commission concluded that the agreement was made in good faith and included all necessary minimum terms and conditions. The FWC considered the evidence provided by both parties and examined the content of the agreement to ensure it was fair and reasonable. The Commission highlighted that the agreement provided a balanced approach, addressing the needs and interests of both the employer and the employees. Consequently, the FWC approved the Ausco Modular Pty Ltd Edinburgh North Enterprise Agreement 2023.

In light of the findings, the FWC approved the agreement, thereby resolving the application. The approval ensures that the agreement will govern the terms and conditions of employment for the employees covered by the agreement. The decision provides certainty and stability for both the employer and the employees, allowing them to proceed under the terms of the approved agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established