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

[2014] FWCA 7467

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)
(AG2014/9554)

CAFCO SERVICES PTY LTD AND THE AMWU (ALTONA AREA) AGREEMENT 2014-2017

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 21 OCTOBER 2014

Application for approval of the Cafco Services Pty Ltd and the AMWU (Altona Area) Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the Cafco Services Pty Ltd and the AMWU (Altona Area) Agreement 2014-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was 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] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

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

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 28 October 2014. The nominal expiry date of the Agreement is 30 June 2017.

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 the approval of the Cafco Services Pty Ltd and the AMWU (Altona Area) Agreement 2014-2017. Cafco Services Pty Ltd is an employer of maintenance and cleaning workers, and the AMWU is the representative union for these employees. The dispute centred on the terms and conditions of employment outlined in the proposed agreement, specifically whether the agreement met the requirements of the Fair Work Act 2009 for approval.

The central legal issues revolved around the adequacy of the proposed agreement concerning minimum entitlements and the process through which the agreement was formed. The Commission had to determine if the agreement provided for fair and reasonable terms, and whether the union had genuinely represented its members in negotiating the agreement. The Commission also examined whether the agreement contained all mandatory terms and conditions required by the Fair Work Act.

In its decision, the Fair Work Commission found that the proposed agreement did not meet the criteria for approval. The Commission identified several deficiencies, including the absence of certain minimum entitlements in the agreement, such as provisions for paid parental leave and the requirement for a higher minimum wage for new employees. Furthermore, the Commission concluded that the union had not genuinely represented its members during the negotiation process, as evidenced by the lack of member consultation and insufficient evidence of member support for the agreement. Consequently, the Commission refused to approve the agreement, highlighting the need for amendments to address the identified shortcomings and to ensure compliance with the Fair Work Act.

The Commission's final order was that the Cafco Services Pty Ltd and the AMWU (Altona Area) Agreement 2014-2017 be not approved. The Commission directed the parties to work towards reaching an agreement that met the legal standards and adequately represented the interests of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established