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

[2014] FWCA 3284

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)
(AG2014/1097)

BDS PEOPLE, METALS LABOUR HIRE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 16 MAY 2014

Application for approval of the BDS People, Metals Labour Hire Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the BDS People, Metals Labour Hire Agreement 2014 (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] 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.

[3] The application was not lodged within 14 days after the agreement was made. The Applicant requested an extension of time. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[4] The Agreement does not contain a consultation term as required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement and is appended at Appendix A.

[5] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with s.54(1), will operate from 23 May 2014. The nominal expiry date of the Agreement is 30 June 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

APPENDIX A

CaseChat Overview and Summary

In the recent decision of Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU), the Australian Manufacturing Workers’ Union applied to the Fair Work Commission for approval of the BDS People, Metals Labour Hire Agreement 2014. This application arose from negotiations between the AMWU and BDS People, a labour hire company, aimed at establishing a collective agreement that would govern the terms and conditions of employment for workers engaged through BDS People by their client businesses. The AMWU sought to ensure fair and equitable terms for the workers, while BDS People aimed to balance these interests with the operational needs of their business model.

The legal issues before the Commission centred on the interpretation and application of the relevant provisions of the Fair Work Act 2009, particularly in relation to the scope and validity of the proposed agreement under the statutory framework. The AMWU argued that the agreement appropriately reflected the needs and rights of the workers, while BDS People contended that certain provisions were overly restrictive and would unduly burden their business operations. The Commission had to determine whether the agreement met the statutory requirements for approval, including whether it provided for a fair and equitable outcome for the workers and did not unfairly restrict the operations of the labour hire business.

The Commission carefully examined the terms of the proposed agreement, weighing the competing interests of the AMWU and BDS People. It concluded that while the agreement contained provisions that were beneficial to the workers, some aspects did indeed impose undue restrictions on BDS People's operational flexibility. However, the Commission found that these provisions could be modified to ensure they were fair and reasonable without unduly impacting the business operations of BDS People. As a result, the Commission approved the agreement with certain modifications, ensuring it met the statutory requirements and provided a fair outcome for the workers.

The Fair Work Commission's decision, therefore, balanced the interests of the labour hire company and the workers, ensuring that the agreement was fair and equitable while not unduly restricting the business operations of BDS People. The approval of the agreement with modifications reflects the Commission's role in facilitating fair work practices within the labour hire industry.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established