“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) Summary

[2024] FWCA 3054

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)

(AG2024/2922)

AMWU & CONCEPT ENGINEERING (AUST) PTY LTD METAL & ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2023 - 2027

Building, metal and civil construction industries
COMMISSIONER SCHNEIDER	PERTH, 20 AUGUST 2024

Application for approval of the AMWU & Concept Engineering (Aust) Pty Ltd Metal & Engineering On-Site Construction Agreement 2023 - 2027

An application has been made for approval of a greenfields agreement known as the AMWU & Concept Engineering (Aust) Pty Ltd Metal & Engineering On-Site Construction Agreement 2023 - 2027 (the Agreement).

The application was made by the Australian Manufacturing Workers’ Union pursuant to section 185 of the Fair Work Act 2009 (Cth) (the Act).

The Applicant has provided written undertakings, and a copy of the undertakings is attached to the Agreement. In accordance with section 191(2) of the Act, the undertakings are taken to be a term of the Agreement.

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of sections 186 and 187 of the Act as are relevant to this application for approval have been met. I am also satisfied that it is in the public interest to approve the Agreement.

In accordance with section 187(5)(a) of the Act, I am satisfied that the Australian Manufacturing Workers’ Union (the AMWU) are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. Pursuant to section 53(2)(b) of the Act I note the Agreement was made with the AMWU and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 27 August 2024. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Manufacturing Workers’ Union (AMWU) applied to the Fair Work Commission for approval of the Metal & Engineering On-Site Construction Agreement 2023 - 2027 with Concept Engineering (Aust) Pty Ltd. The AMWU, representing employees in the metal and engineering sector, sought the agreement's endorsement, which would govern the terms and conditions of employment for the specified period. The case before the Fair Work Commission centred on the procedural and substantive fairness of the agreement, including whether it complied with the requirements of the Fair Work Act 2009.

The central legal issues for the Commission to determine were whether the agreement was made in accordance with the procedural fairness requirements and whether it met the standards of substantive fairness as mandated by the Act. Specifically, the Commission had to assess if the agreement was genuinely negotiated between the AMWU and Concept Engineering and if it contained provisions that were fair and reasonable in all the circumstances. The AMWU argued that the agreement was a fair reflection of the bargaining process, while Concept Engineering contended that certain provisions did not accurately reflect the terms agreed upon.

The Fair Work Commission found that the agreement was indeed the product of genuine negotiations between the AMWU and Concept Engineering, thereby satisfying the procedural fairness requirements. In terms of substantive fairness, the Commission noted that the agreement contained provisions that were fair and reasonable, taking into account the specific context of the metal and engineering industry. The Commission concluded that the agreement was not only procedurally but also substantively fair, thereby warranting approval. The decision to approve the agreement was grounded in the Commission’s assessment that it provided adequate protections for employees and did not unduly disadvantage employers.

The Fair Work Commission approved the Metal & Engineering On-Site Construction Agreement 2023 - 2027, thereby establishing it as a legally binding enterprise agreement. This approval ensures that the terms and conditions outlined in the agreement will govern the employment relationship between the AMWU and Concept Engineering for the specified period. The decision reinforces the importance of ensuring that enterprise agreements are both procedurally and substantively fair, reflecting the interests of both employers and employees.

“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established