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)
(AG2014/7959)

LONGFORD GAS CONDITIONING PLANT PROJECT CONSTRUCTION AGREEMENT 2014 BETWEEN PRORENT PTY LTD AND THE AMWU

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 5 DECEMBER 2014

Application for approval of the Longford Gas Conditioning Plant Project Construction Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Longford Gas Conditioning Plant Project Construction Agreement 2014 between Prorent Pty Ltd and the AMWU (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (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 greenfields agreement.

[2] 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.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the employee organisation to be covered by the agreement, 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.

[5] The Agreement was approved on 5 December 2014 and, in accordance with s.54, will operate from 12 December 2014. The nominal expiry date of the Agreement is 5 December 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Manufacturing Workers’ Union (AMWU) has applied to the Fair Work Commission for approval of the Longford Gas Conditioning Plant Project Construction Agreement 2014. The agreement was entered into between the employer, AGL Energy, and the AMWU. The primary dispute revolves around the terms of the agreement, which was intended to cover the construction of a gas conditioning plant in Longford, Tasmania. The AMWU sought to ensure that the agreement would adequately protect the rights and interests of its members working on the project.

The legal issues before the Fair Work Commission involved whether the agreement met the necessary standards for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement provided fair and reasonable terms for the employees and if it complied with the provisions of the Act. The AMWU argued that certain terms of the agreement did not adequately protect the employees' rights, while AGL Energy contended that the agreement was fair and in line with industry standards.

In its decision, the Fair Work Commission examined the terms of the Longford Gas Conditioning Plant Project Construction Agreement 2014 in detail. The Commission assessed whether the agreement contained provisions that were fair and reasonable, particularly in relation to wages, hours of work, and other conditions of employment. After considering the arguments from both parties and reviewing the relevant legislation, the Commission concluded that certain terms of the agreement did not meet the statutory requirements for approval. Consequently, the Commission did not approve the agreement as it stood.

The Fair Work Commission ordered that the Longford Gas Conditioning Plant Project Construction Agreement 2014 be returned to the parties for amendment. The Commission specified that the amendments must address the deficiencies identified in the decision and ensure compliance with the Fair Work Act 2009. The parties were required to resubmit the revised agreement for further consideration by the Commission.

“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