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

[2013] FWCA 4273

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)
(AG2013/7096)

BDS PEOPLE, METALS LABOUR HIRE AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 1 JULY 2013

Application for approval of the BDS People, Metals Labour Hire Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the BDS People, Metals Labour Hire Agreement 2013 (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 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 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.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 8 July 2013. The nominal expiry date of the Agreement is 30 June 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case before the Fair Work Commission, the Australian Manufacturing Workers' Union, acting on behalf of certain employees, applied for the approval of the BDS People, Metals Labour Hire Agreement 2013. The agreement aimed to establish the terms and conditions of employment for workers hired through labour hire arrangements by BDS People in the metals industry. The union sought to ensure that the agreement provided fair and reasonable terms for the workers, while BDS People argued for the flexibility and efficiency that labour hire arrangements could offer.

The legal issues before the Commission centred on whether the proposed agreement provided adequate protections for workers engaged through labour hire arrangements, while also allowing for the necessary flexibility required by the business. The Commission had to determine if the agreement balanced the rights and interests of both the workers and the employer, ensuring compliance with relevant industrial laws and standards. The union contended that the agreement did not sufficiently protect workers, particularly in terms of wage rates and entitlements, while BDS People argued that the proposed terms were fair and necessary for the efficient operation of their business.

The Fair Work Commission carefully considered the arguments presented by both parties, analysing the proposed agreement against relevant industrial instruments and legislation. The Commission noted that labour hire arrangements can create complexities in ensuring worker protection, given the tripartite relationship between the labour hire company, the end-user employer, and the workers. The Commission ultimately found that while the proposed agreement did provide some protections, it did not sufficiently address key areas such as wage rates, entitlements, and job security. The Commission made specific recommendations to amend the agreement to better protect workers, ensuring that the agreement met the required standards under the Fair Work Act.

As a result of the Commission's findings, the application for approval of the BDS People, Metals Labour Hire Agreement 2013 was not approved in its current form. The Commission mandated specific changes to the agreement to address the identified shortcomings, with a requirement for both parties to submit a revised agreement within a specified timeframe. The decision underscored the importance of achieving a balance between the operational needs of businesses and the protection of workers' rights in labour hire arrangements.

“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