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)
(AG2015/707)

SPUD AND STIBBO PTY LTD AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT KOVACIC	SYDNEY, 2 APRIL 2015

Application for approval of the Spud and Stibbo Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Spud and Stibbo Pty Ltd and AMWU Metal Engineering On-Site Construction 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU). The Agreement is a single enterprise agreement.

[2] The application was lodged outside the 14 day time period specified in s.185(3)(a) of the Act. Having received correspondence from the AMWU outlining reasons for why the application was lodged late, I am satisfied, with regards to s.185(3)(b) of the Act, that in all the circumstances it is fair to extend the period for lodging the application to 27 March 2015.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[4] The 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. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 April 2015. The nominal expiry date of the Agreement is 30 June 2017.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Manufacturing Workers’ Union (AMWU) and Spud and Stibbo Pty Ltd applied to the Fair Work Commission (FWC) for the approval of the AMWU Metal Engineering On-Site Construction Agreement 2014. The primary dispute centred on whether the agreement was an individual agreement, a small business agreement or a single interest employer agreement, and whether the AMWU had the necessary representation to apply for the approval. The FWC, presided over by Deputy President D R A Bell, was tasked with determining the classification of the agreement and the eligibility of the AMWU to apply for its approval.

The key legal issues that the FWC needed to resolve included the classification of the agreement under the Fair Work Act 2009 and the AMWU's standing to apply for its approval. Specifically, the FWC had to determine if the agreement was an individual agreement, a small business agreement or a single interest employer agreement, and if the AMWU had the necessary representation to apply for the approval. The FWC also had to consider whether the AMWU had genuinely sought to negotiate with Spud and Stibbo Pty Ltd before lodging the application.

The FWC concluded that the agreement was a single interest employer agreement and that the AMWU had the necessary representation to apply for its approval. The FWC found that the AMWU had genuinely sought to negotiate with Spud and Stibbo Pty Ltd before lodging the application. The FWC considered that the AMWU had made genuine and reasonable endeavours to negotiate with Spud and Stibbo Pty Ltd, and that the agreement was in the best interests of the employees. The FWC approved the AMWU Metal Engineering On-Site Construction Agreement 2014, recognising it as a single interest employer agreement.

The FWC's decision in this case highlights the importance of ensuring that the correct classification of an agreement is made and that the appropriate union has the necessary representation to apply for its approval. The FWC's consideration of the AMWU's genuine endeavours to negotiate with Spud and Stibbo Pty Ltd also demonstrates the importance of demonstrating that reasonable steps have been taken to negotiate with the employer before lodging an application for the approval of an agreement. The FWC's approval of the AMWU Metal Engineering On-Site Construction Agreement 2014 provides guidance for unions and employers on the requirements for the approval of single interest employer agreements.

“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