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

[2013] FWCA 2083

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)
(AG2013/521)

ONSITE MACHINING & PIPELINE SERVICES AUSTRALIA PTY LTD ANGLESEA POWER STATION SHUTDOWN AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 5 APRIL 2013

Application for approval of the Onsite Machining & Pipeline Services Australia Pty Ltd Anglesea Power Station Shutdown Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Onsite Machining & Pipeline Services Australia Pty Ltd Anglesea Power Station 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), 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.

[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 court involved the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, known as the Australian Manufacturing Workers’ Union (AMWU), and Onsite Machining & Pipeline Services Australia Pty Ltd. The union sought approval of a shutdown agreement executed by the company, which pertained to the Anglesea Power Station. The dispute was adjudicated in the Fair Work Commission, an Australian federal statutory tribunal.

The central legal issue before the court was whether the shutdown agreement was made in good faith and whether it was procedurally sound in its negotiation and execution. The AMWU contended that the agreement did not meet the criteria for good faith negotiations and that the process leading to its creation was flawed. The tribunal needed to determine the validity of these claims and decide if the agreement should be approved.

In examining the arguments presented, the tribunal found that the shutdown agreement had indeed been made in good faith. It was satisfied that the negotiation process was procedurally correct and that the terms of the agreement were fair. The union's contentions regarding procedural issues were dismissed as they did not sufficiently demonstrate any breach of the necessary legal standards. As a result, the tribunal approved the agreement, finding it to be in compliance with the relevant legislative framework.

The court ordered the approval of the Onsite Machining & Pipeline Services Australia Pty Ltd Anglesea Power Station Shutdown Agreement 2013. The AMWU’s application for disapproval was dismissed, and the agreement was accepted as valid.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established