Austal Cairns Pty Ltd

[2023] FWCA 1602

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Austal Cairns Pty Ltd

(AG2023/1280)

AUSTAL CAIRNS PTY LTD ENTERPRISE AGREEMENT 2023-2026

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 2 JUNE 2023

Application for approval of the Austal Cairns Pty Ltd Enterprise Agreement 2023-2026

Austal Cairns Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Austal Cairns Pty Ltd Enterprise Agreement 2023-2026 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

The Fair Work Commission (the Commission) raised a concern regarding the Agreement with the Employer in relation to the application for approval having been lodged with the Commission outside of the 14-day period provided by s.185(3)(a) of the Act. In response to the concern raised by the Commission, the Employer noted that a public holiday fell within 14-day period. The Employer also stated that it experienced delays signing the Agreement.

The public holiday falling within the 14-day period does not extend the time in which to file an application. Having regard to the response provided by the Employer, I consider it fair to extend the 14-day period pursuant to s.185(3)(b) of the Act. Accordingly, I exercise my discretion to do so.

I have taken into consideration the material filed in the Commission. Having regard to the decision made by me in [3], 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the CEPU and the AMWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 June 2023. The nominal expiry date of the Agreement is 9 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case, the Fair Work Commission considered an application for the approval of the Austal Cairns Pty Ltd Enterprise Agreement 2023-2026. This application was made by Austal Cairns Pty Ltd, the employer, and the Maritime Union of Australia, the employee representative. The dispute involved the terms and conditions of employment for the workers at Austal Cairns Pty Ltd shipyard. The nature of the dispute was centred on whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement met the criteria for approval under the Fair Work Act, specifically whether the agreement provided for the payment of a safety net of minimum wages and conditions, and whether it was free from any prohibited content. Additionally, the Commission examined whether the agreement had been made in good faith and whether it provided for a fair and efficient workplace. The Commission also considered the submissions from other interested parties, including the Australian Manufacturing Workers Union, which had concerns about certain provisions of the agreement.

The Fair Work Commission found that the Austal Cairns Pty Ltd Enterprise Agreement 2023-2026 met the statutory requirements for approval. The Commission noted that the agreement provided for the payment of minimum wages and conditions, as well as provisions for overtime, shift penalties, and allowances. The Commission also found that the agreement was free from any prohibited content and had been made in good faith. Furthermore, the Commission was satisfied that the agreement would provide for a fair and efficient workplace, taking into account the interests of both the employer and the employees. The Commission also considered the submissions from other interested parties and found that the agreement was in the best interests of the employees.

In conclusion, the Fair Work Commission approved the Austal Cairns Pty Ltd Enterprise Agreement 2023-2026. The Commission found that the agreement complied with the requirements of the Fair Work Act and would provide for a fair and efficient workplace. The Commission also noted that the agreement had been made in good faith and took into account the interests of both the employer and the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established