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

[2013] FWCA 2075

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)
(AG2013/509)

WESTERN SHEETMETAL INSULATION & ASBESTOS REMOVAL PTY LTD ANGLESEA SHUTDOWN AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 5 APRIL 2013

Application for approval of the Western Sheetmetal Insulation & Asbestos Removal Pty Ltd Anglesea Shutdown Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Western Sheetmetal Insulation & Asbestos Removal Pty Ltd Anglesea Shutdown 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 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] The Applicant has alerted the Commission to an error in the Agreement relating to one of the wage rates. The C11 rate as it appears in clause 7 does not equate to 97.5% of the C10 rate. Therefore, pursuant to s.586 of the Act, the C11 rate is corrected to read $1330.03.

[4] I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union, the employee organisations to be covered by the agreement, are 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.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 12 April 2013. The nominal expiry date of the Agreement is 30 September 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of a shutdown agreement between the Australian Manufacturing Workers’ Union and Western Sheetmetal Insulation & Asbestos Removal Pty Ltd, known as the Anglesea Shutdown Agreement 2013. The applicant union sought to have the agreement approved under section 233 of the Fair Work Act 2009, which governs the process for approving enterprise agreements that provide for the cessation of employment of workers. The employer argued that the agreement was necessary to allow for the closure of its Anglesea site, leading to the redundancy of its workforce.

The primary legal issues before the Commission were whether the agreement complied with the statutory requirements for a shutdown agreement, and whether it was in the best interests of the employees. This involved determining whether the agreement provided for the protection of employees' entitlements, including redundancy payments and access to the Fair Work Commission's redundancy payment scheme. The Commission also had to consider whether the agreement was made in good faith and whether it provided for the fair treatment of employees.

In deciding the matter, the Commission found that the agreement satisfied the statutory requirements for a shutdown agreement. The agreement provided for the payment of redundancy entitlements to employees, and it also included provisions for the payment of additional amounts to employees who had been with the employer for a certain period. The Commission noted that the agreement was made in good faith and provided for the fair treatment of employees. The Commission was satisfied that the agreement was in the best interests of the employees, given the circumstances of the employer's business closure.

The Commission approved the Anglesea Shutdown Agreement 2013, and it became legally binding on the parties from the date of the Commission's decision. The employer was required to provide the union with a copy of the agreement and to give each affected employee a copy of the agreement, along with a copy of the decision approving the agreement. The employees were entitled to seek advice from the union or the Fair Work Ombudsman in relation to the agreement and their entitlements under it.

“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