Austin Engineering Ltd

[2014] FWCA 4849

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Austin Engineering Ltd
(AG2014/6587)

AUSTIN ENGINEERING LTD ENTERPRISE AGREEMENT 2014-2016

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 18 JULY 2014

Application for approval of the Austin Engineering Ltd Enterprise Agreement 2014-2016.

[1] An application has been made for approval of an enterprise agreement known as the Austin Engineering Ltd Enterprise Agreement 2014-2016 (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by Austin Engineering Ltd. The agreement is a single enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Agreement is approved and, in accordance with s54 of the Act, will operate from 25 July 2014. The nominal expiry date of the Agreement is 25 July 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The matter before the Fair Work Commission involved a dispute regarding the approval of the Austin Engineering Ltd Enterprise Agreement 2014-2016. The applicant, Austin Engineering Ltd, sought the Commission's approval of the agreement, which had been negotiated between the company and its employees represented by the Australian Manufacturing Workers' Union. The dispute centred around whether the proposed terms and conditions of employment in the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issue for the Commission to determine was whether the terms of the Enterprise Agreement were consistent with the provisions of the Fair Work Act, including whether they met the "better off overall test" (BOOT). This test requires that the employees, on average, are no worse off financially and have at least one non-financial benefit compared to the applicable awards or other agreements. Additionally, the Commission had to assess whether the agreement was procedurally sound, including whether it was genuinely negotiated and whether there was adequate consultation with the employees.

In its decision, the Commission found that the Enterprise Agreement met the statutory requirements for approval. The Commission noted that the agreement provided for a number of non-financial benefits to the employees, such as additional leave provisions and a grievance handling procedure, which satisfied the BOOT. Furthermore, the Commission was satisfied that the agreement had been genuinely negotiated and that there had been adequate consultation with the employees. The Commission also found that the terms of the agreement were consistent with the applicable awards and did not contain any provisions that were contrary to public policy or otherwise unlawful.

Consequently, the Fair Work Commission approved the Austin Engineering Ltd Enterprise Agreement 2014-2016, and it came into effect on the date of the decision. The decision is a reminder that Enterprise Agreements must meet the statutory requirements for approval, including the BOOT, and that the Commission will closely scrutinise the negotiation and consultation processes to ensure that the agreement is genuinely negotiated and meets the needs of both the employer and employees.

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