DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Mechanical Engineering Pty Ltd
(AG2015/4081)

AUSTRALIAN MECHANICAL ENGINEERING ENTERPRISE AGREEMENT 2015-2016 (EBA)

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 31 JULY 2015

Application for approval of the Australian Mechanical Engineering Enterprise Agreement 2015-2016 (EBA).

[1] An application has been made for approval of an enterprise agreement known as the Australian Mechanical Engineering Enterprise Agreement 2015-2016 (EBA) (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Mechanical Engineering Pty Ltd. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Agreement was approved on 31 July 2015 and, in accordance with s.54, will operate from 7 August 2015. The nominal expiry date of the Agreement is 1 July 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Australian Mechanical Engineering Pty Ltd, an employer, brought an application to the Fair Work Commission seeking approval of an enterprise bargaining agreement. The agreement in question was the Australian Mechanical Engineering Enterprise Agreement 2015-2016, which had been registered by the Fair Work Commission in 2015 and was set to expire on 31 March 2016. The applicant sought to extend the agreement for a further year to 31 March 2017. The dispute centred around whether the agreement met the legal standards and criteria for approval under the Fair Work Act 2009.

The primary legal issues before the commission were whether the agreement provided for the proper payment of wages and conditions, and whether it was fair and reasonable in the context of the enterprise. The applicant needed to demonstrate that the agreement met the criteria for approval as set out in the Fair Work Act. Specifically, the commission had to assess if the agreement was free from prohibited content, if it provided for proper payment of wages and conditions, and if it was a genuine agreement that facilitated the improvement of workplace relations.

The commission noted that the agreement was free from prohibited content and met the requirements for proper payment of wages and conditions. The commission found that the agreement contained provisions that were consistent with the provisions of the Fair Work Act and did not include any unlawful terms. The commission also determined that the agreement was a genuine agreement that facilitated the improvement of workplace relations, as evidenced by the process of negotiation between the employer and the employees' representatives. Consequently, the commission approved the application for the extension of the agreement, finding that it was fair and reasonable in all the circumstances.

The Fair Work Commission approved the application for the extension of the Australian Mechanical Engineering Enterprise Agreement 2015-2016. The agreement was extended to 31 March 2017, providing certainty and stability to both the employer and employees during the period. This decision highlighted the commission's commitment to facilitating the negotiation of fair and reasonable agreements that benefit both employers and employees, while ensuring compliance with the provisions of the Fair Work Act.

Australian Mechanical Engineering Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established