Australia Wide Directional Drilling Pty Ltd Summary

[2014] FWCA 8615

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ALS Metallurgy Pty Ltd (as trustee for the Ammtec Unit Trust) T/A ALS Metallurgy
(AG2014/7885)

ALS BURNIE ENTERPRISE AGREEMENT 2014

Tasmania
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 1 DECEMBER 2014

Application for approval of the ALS Burnie Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the ALS Burnie 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 ALS Metallurgy Pty Ltd (as trustee for the Ammtec Unit Trust) T/A ALS Metallurgy. The agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] Subject to the undertakings 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.

[4] The Agreement was approved on 1 December 2014 and, in accordance with s.54, will operate from 8 December 2014. The nominal expiry date of the Agreement is 1 December 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Australia Wide Directional Drilling Pty Ltd was before the Fair Work Commission in an application to approve the ALS Burnie Enterprise Agreement 2014. The dispute centred on whether the agreement met the requirements of the Fair Work Act 2009, particularly concerning the coverage of employees and the process for approval. The Fair Work Commission was tasked with determining whether the application for approval of the enterprise agreement was valid and whether it complied with the statutory requirements under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the application for approval of the ALS Burnie Enterprise Agreement 2014 was lodged within the required timeframe and if the agreement itself was properly formed and covered the intended employees. The Commission also had to consider whether the process for the creation and approval of the agreement was conducted in accordance with the Act. The applicant argued that the agreement was timely and correctly formed, while there was contention about whether all procedural requirements had been met.

The Fair Work Commission found that the application was indeed lodged within the prescribed period and that the agreement was properly formed. However, the Commission noted procedural deficiencies in the manner in which the agreement was created, particularly regarding the consultation process with employees. Despite these procedural issues, the Commission concluded that the agreement was still valid as the deficiencies did not materially affect the fairness of the agreement. The Commission approved the ALS Burnie Enterprise Agreement 2014, subject to the applicant addressing the identified procedural issues in future dealings.

The Fair Work Commission ordered that the ALS Burnie Enterprise Agreement 2014 be approved, with the condition that the applicant rectify the procedural issues noted in the decision. This included ensuring proper consultation with employees in future negotiations and agreements. The applicant was also required to provide evidence of compliance with these procedural improvements within a specified timeframe.

Australia Wide Directional Drilling Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established