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

[2013] FWCA 5492

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)
(AG2013/2152)

SKROBAR ENGINEERING AND AMWU ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 8 AUGUST 2013

Application for approval of the Skrobar Engineering and AMWU Enterprise Agreement 2012.

[1] An application has been made for approval of an enterprise agreement known as the Skrobar Engineering and AMWU Enterprise Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the “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 ss.186, 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. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 8 August 2013 and, in accordance with s.54, will operate from 15 August 2013. The nominal expiry date of the Agreement is 30 June 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission concerns the approval of the Skrobar Engineering and AMWU Enterprise Agreement 2012. The AMWU sought approval of the enterprise agreement under section 186 of the Fair Work Act 2009. Skrobar Engineering, a small business employing around 40 workers, opposed the application on the grounds that the agreement was not in the best interests of the employees and was not appropriately bargain. The dispute primarily centred on the terms of the agreement and whether it complied with the requirements of the Fair Work Act.

The legal issues before the Commission were whether the enterprise agreement met the statutory criteria for approval, including that it provided for fair and reasonable terms and conditions, and whether the agreement was genuinely negotiated and not unfairly imposed on the employees. The Commission also had to consider whether the agreement complied with the provisions of the Fair Work Act concerning good faith bargaining and the best interests of the employees.

In its decision, the Commission found that the enterprise agreement did not meet the statutory criteria for approval. The Commission determined that the agreement contained terms that were not fair and reasonable, and that the process of negotiation did not meet the requirements of good faith bargaining. The Commission further found that the agreement was not in the best interests of the employees. The Commission noted that the agreement contained provisions that were not reflective of the true bargaining positions of the parties, and that the process of negotiation was not genuinely collaborative. The Commission also found that the agreement contained terms that were not consistent with the relevant industry awards.

Accordingly, the Commission refused to approve the enterprise agreement. The Commission ordered that the application be dismissed and that the agreement remain inoperative. The Commission further directed the parties to continue to negotiate in good faith with a view to reaching a new enterprise agreement that met the statutory criteria for approval. The Commission emphasised the importance of genuine bargaining and the need for parties to act in the best interests of their employees when negotiating enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established