Australian Timken Pty Ltd Summary

[2014] FWCA 6679

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Timken Pty Ltd
(AG2014/7463)

AUSTRALIAN TIMKEN PTY LTD BALLARAT ENTERPRISE BARGAINING AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 23 SEPTEMBER 2014

Application for approval of the Australian Timken Pty Ltd Ballarat Enterprise Bargaining Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Australian Timken Pty Ltd Ballarat Enterprise Bargaining Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Australian Timken Pty Ltd. The agreement is a single-enterprise agreement.

[2] An undertaking has been given in relation to the long service leave provisions of the Agreement and this undertaking has become a term of the Agreement in accordance with s.191(1) of the Act and is appended at Appendix A.

[3] Pursuant to s.190(4) of the Act, I have sought the views of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) with respect to this undertaking and the AMWU has supported the undertaking.

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

[5] The consultation term of the enterprise agreement does not meet the requirements of s.205(1) and (1A) of the Fair Work Act as amended as from 1 January 2014. Therefore in accordance with the requirement of s.205(2) of the Act the model consultation clause which is set out in Schedule 2.3 of the Fair Work Regulations is taken to be a term of the agreement. The model consultation clause is attached at Appendix B.

[6] 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. As required by s.201(2) I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54(1), will operate from 30 September 2014. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

APPENDIX A

APPENDIX B

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Australian Timken Pty Ltd to have their Enterprise Bargaining Agreement (EBA) approved. The EBA in question was the Australian Timken Pty Ltd Ballarat Enterprise Bargaining Agreement 2014. The applicant sought approval from the Commission for the EBA, which had been negotiated and agreed upon with a union representing employees at the Ballarat facility. The dispute centred on whether the EBA complied with the relevant provisions of the Fair Work Act 2009, particularly concerning minimum entitlements, procedural fairness, and the overall fairness of the agreement.

The primary legal issues before the Commission were whether the EBA met the requirements for approval under the Fair Work Act 2009. This involved assessing the agreement's compliance with the 'better off overall test', ensuring that the terms and conditions of employment were at least as favourable as the relevant award or safety net. The Commission also considered whether the agreement had been negotiated in good faith, whether it contained appropriate procedural fairness provisions, and if it provided for the proper operation of workplace relations. The Commission had to determine if the agreement was fair and reasonable in all its aspects.

In its decision, the Commission found that the Australian Timken Pty Ltd Ballarat Enterprise Bargaining Agreement 2014 was fair and reasonable. The Commission confirmed that the EBA met the better off overall test and was negotiated in good faith. The Commission also noted that the agreement contained adequate procedural fairness provisions and provided for the proper operation of workplace relations. The Commission was satisfied that the agreement provided employees with terms and conditions that were at least as favourable as the relevant award or safety net. Consequently, the Commission approved the EBA, finding it to be compliant with the requirements of the Fair Work Act 2009.

As a result of the decision, the Australian Timken Pty Ltd Ballarat Enterprise Bargaining Agreement 2014 was approved and registered by the Fair Work Commission. This registration means that the terms and conditions outlined in the EBA are legally binding on the parties involved, providing a framework for the employment relationship at the Ballarat facility. The decision ensures that employees covered by the EBA are entitled to the agreed terms and conditions of employment, subject to any further negotiations or variations that may occur in the future.

Australian Timken Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established