DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

"Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU)
(AG2019/263)

MDP CONSTRUCTION & ENGINEERING PTY LTD T/A ENGINEERING DYNAMICS AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2017-2020

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 15 FEBRUARY 2019

Application for approval of the MDP Construction & Engineering Pty Ltd T/A Engineering Dynamics and AMWU Metal Engineering On-Site Construction Agreement 2017-2020.

[1] An application has been made for approval of a greenfields agreement known as the MDP Construction & Engineering Pty Ltd T/A Engineering Dynamics and AMWU Metal Engineering On-Site Construction Agreement 2017-2020 (the Agreement). The application was made by “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] 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 ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is 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. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 February 2019. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Manufacturing Workers' Union (AMWU) and MDP Construction & Engineering Pty Ltd T/A Engineering Dynamics were before the Fair Work Commission (FWC) in an application for the approval of their Enterprise Agreement. The dispute centred around the terms and conditions outlined in the proposed agreement, specifically whether they met the requirements for a lawful and fair enterprise agreement under the Fair Work Act 2009 (Cth). The FWC had to determine if the agreement, titled the AMWU Metal Engineering On-Site Construction Agreement 2017-2020, complied with the relevant statutory provisions and was genuinely negotiated between the parties.

The legal issues that the FWC needed to resolve were primarily whether the agreement was procedurally and substantively valid. Procedurally, the FWC considered whether the agreement had been genuinely bargained between the parties and if there were any procedural irregularities. Substantively, the FWC assessed if the terms of the agreement met the criteria for a lawful enterprise agreement, including whether they covered all mandatory bargaining items, and if the terms were fair and reasonable. The FWC also needed to consider if the agreement included any unlawful terms that would render it invalid.

In delivering its decision, the FWC found that the AMWU Metal Engineering On-Site Construction Agreement 2017-2020 was procedurally valid, as it was genuinely negotiated between the parties, and no procedural irregularities were identified. The FWC determined that the agreement substantively met the requirements of a lawful enterprise agreement. The FWC concluded that all mandatory bargaining items were covered, and the terms of the agreement were fair and reasonable. The FWC approved the agreement, finding that it did not contain any unlawful terms that would invalidate it.

The FWC's final order was the approval of the AMWU Metal Engineering On-Site Construction Agreement 2017-2020. The agreement was deemed to be a lawful and fair enterprise agreement under the Fair Work Act 2009 (Cth), and it would come into effect on the date of the FWC's decision. The approval allowed the AMWU and MDP Construction & Engineering Pty Ltd T/A Engineering Dynamics to implement the terms and conditions of the agreement for the specified period of 2017-2020.

"Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU)

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established