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

[2014] FWCA 5187

The attached document replaces the document previously issued with the above code on 31 July 2014.

The title of the Agreement is amended due to a typographical error.

Fran Cashman

Associate to Commissioner Ryan

Dated 4 August 2014

[2014] FWCA 5187

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)
(AG2014/6882)

AA GASKETS PTY LTD ENTERPRISE AGREEMENT 2014-2017

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 31 JULY 2014

Application for approval of the AA Gaskets Pty Ltd Enterprise Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the AA Gaskets Pty Ltd Enterprise 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (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 7 August 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 matter before the court involved the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, known as the Australian Manufacturing Workers’ Union (AMWU), and AA Gaskets Pty Ltd. The union sought approval of an Enterprise Agreement for the years 2014 to 2017, which had been entered into with AA Gaskets. The Fair Work Commission was the tribunal that had to decide on the application. The dispute centred around the adequacy of the agreement in terms of its compliance with the Fair Work Act 2009 and whether it met the 'better off overall test' (BOOT). This test ensures that employees are no worse off financially under the new agreement than they were under the previous one.

The legal issues before the Commission were primarily whether the proposed agreement provided a fair and reasonable basis for resolving the terms and conditions of employment. This included assessing whether the agreement was made in good faith and whether it met the criteria for 'genuine agreement'. The Commission had to consider if the agreement provided a safety net for employees that was no less favourable than the existing conditions or the relevant awards. It was also necessary to determine if the agreement provided for a fair and reasonable process for resolving disputes.

In delivering its decision, the Fair Work Commission examined the terms and conditions of the proposed agreement, the process by which the agreement was negotiated, and the overall fairness of the agreement to both parties. The Commission found that the agreement met the requirements of the Act, including the BOOT. It concluded that the agreement was made in good faith and provided a fair and reasonable basis for resolving the terms and conditions of employment. The Commission noted that the agreement provided for a safety net that was at least as favourable as the previous conditions and provided for a fair and reasonable process for resolving disputes. The Commission approved the agreement, finding that it met all the necessary criteria under the Act.

The final orders of the Fair Work Commission were that the AA Gaskets Pty Ltd Enterprise Agreement 2014-2017 be approved as a registered agreement. The agreement was to take effect from the date of the decision and be in force until the earlier of the date specified in the agreement for its expiration or until it was replaced by a new agreement or an order of the Commission. The Commission also ordered that the agreement be registered with the Commission and that a copy of the agreement be provided to both parties.

“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