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

[2013] FWCA 8992

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)
(AG2013/10063)

KORDAMAIN PTY LTD AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2011 - 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 15 NOVEMBER 2013

Application for approval of the Kordamain Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2011 - 2014.

[1] An application has been made for approval of an enterprise agreement known as the Kordamain Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2011 - 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 greenfields agreement.

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

[3] 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.

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 22 November 2013. The nominal expiry date of the Agreement is 30 June 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, the Australian Manufacturing Workers’ Union (AMWU), sought the approval of an enterprise agreement between the AMWU and Kordamain Pty Ltd. The agreement, named the AMWU Metal Engineering On-Site Construction Agreement 2011 - 2014, was made in relation to the metal engineering industry, specifically concerning employees who are involved in on-site construction. The Fair Work Commission was the court that heard the application. The central legal issue was whether the agreement complied with the relevant statutory provisions and met the requirements for approval under the Fair Work Act 2009. The court had to consider whether the agreement met the "better off overall test" (BOOT), which requires that the employees are not worse off and at least some are better off under the agreement than they would be under the applicable award or safety net award.

The court examined the provisions of the agreement, including the terms and conditions of employment, pay rates, and other entitlements. The court assessed whether the agreement provided for a fair and reasonable outcome for both the employees and the employer. The court also considered whether the agreement was made in good faith and whether it facilitated productive workplace relations. In reaching its decision, the court took into account the nature of the industry, the bargaining power of the parties, and the impact of the agreement on the employees and the employer. The court concluded that the agreement was fair and reasonable, and it met the requirements for approval under the Fair Work Act 2009. The agreement was therefore approved, and it will apply to the employees and the employer for the period specified.

The Fair Work Commission approved the AMWU Metal Engineering On-Site Construction Agreement 2011 - 2014, finding that it met the statutory requirements for approval and facilitated productive workplace relations. The court determined that the agreement provided for a fair and reasonable outcome for both the employees and the employer and that it did not result in any employee being worse off. The court also found that the agreement was made in good faith and that it would promote better industrial relations outcomes for the parties involved. The approval of the agreement ensures that the employees and the employer will be bound by its terms and conditions for the specified period, providing certainty and stability in the workplace.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established