“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers' Union (AMWU) v Reliance Worldwide Corporation (Aust) Pty Ltd T/A Reliance Worldwide

[2024] FWC 772

[2024] FWC 772

FAIR WORK COMMISSION

RECOMMENDATION

Fair Work Act 2009

s.240—Bargaining dispute

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

Reliance Worldwide Corporation (Aust) Pty Ltd T/A Reliance Worldwide

(B2024/143)

DEPUTY PRESIDENT LAKE BRISBANE, 27 MARCH 2024

Recommendation on the proposed replacement of the Reliance Worldwide Corporation Enterprise Agreement 2022

1. On 27 April 2023, Reliance Worldwide Corporation (Aust) Pty Ltd (Reliance) have commenced negotiations with the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australian Workers’ Union (AWU) regarding the proposed replacement of the Reliance Worldwide Corporation Enterprise Agreement 2022 (the Agreement).

1. On 29 September 2023, the AMWU lodged an application for a Protected Ballot Action Order (PABO) which was approved by the Fair Work Commission (the Commission). The s.448A conference was listed before me on 10 October 2023.

1. On 20 February 2024, the AMWU lodged an application with the Commission seeking for the following bargaining matters in dispute to be resolved:

1. Annual wage escalations – The AMWU are seeking a 7% increase in Year 1 of the Agreement, and 5% each in in Year 2 and Year 3 of the Agreement. The total wage increase would be 17%,

2. Trade recognition allowance – This would be an hourly allowance of 1.5%

3. Classification review – The AMWU are seeking an external review of its employee’s work values and adjust employees who are under-classified. Reliance has agreed to undertake this review. The dispute is regarding the timing of the review.

4. Backpay – The AMWU are seeking backpay from the expiry of the previous agreement.

5. Protection of the 10-minute early finish

1. Reliance have remained firm in their position and have put a proposal forward to the AMWU as follows:

Reliance’s proposed wage increases would be effective from the beginning of the first full pay period to commence on or after was the following:

a.Year 1 - 1 July 2023 – 4%

b.Year 2 - 1 July 2024 – 3%

c.Year 3 - 1 July 2025 – 4%.

Classification	1 JULY 2022 CURRENT RATE (GROSS)	1 July 2023 4% (gross)	1 July 2024* 3% (gross)	1 July 2025 4% (gross)
C13	1,038.75	1,080.30	1,112.75	1,157.30
C12	1,087.55	1,131.04	1,165.00	1,211.60
C11	1,191.70	1,239.37	1,276.55	1,327.65
C10	1,272.80	1,323.70	1,363.45	1,418.00
C9	1,333.05	1,386.37	1,428.00	1,485.15
C8	1,385.90	1,441.34	1,484.60	1,544.00
C7	1,486.45	1,545.91	1,592.30	1,656.00
C6	1,612.20	1,676.69	1,727.00	1,796.10
C5	1,648.65	1,714.60	1,766.05	1,836.70
C4	1,690.80	1,758.43	1,811.20	1,883.65

* Note: From 1 July 2024, net tax home income is adjusted upwards as a result of reductions to tax rates (19% to 16% and 32.5% to 30%).

Year 1 is to be paid from the first full pay period after Reliance Worldwide lodge their Agreement with the Commission, and the AMWU and AWU lodge a Form F18 Declaration of their approval for the Agreement.

Year 1 is to be back paid from the first full pay period after the commencement of the Agreement (with backpay only for employees engaged as at date of approval of EA).

1. Reliance have not recognised the trade recognition allowance, or the protection of the 10-minute early finish in the proposed Agreement. There are some inclusions of how long service leave and superannuation are to be paid.

Recommendation

1. It is my view that the proposed Agreement should be taken to a vote and the employees of Reliance should vote to approve the proposed Agreement.

1. Voting to approve the Agreement means that a majority of employees would benefit with a 11% pay increase over the life of the Agreement. The nominal expiry date would be 30 June 2026. The employees would be better off under the proposed Agreement. The employees are paid higher than the applicable Award and rates of pay are high enough that it would cover the trade recognition allowance.

1. The AMWU’s position is not aligned with Reliance’s position on the issues raised and I respect their decision if they do not wish to endorse the Agreement.  

1. If Reliance endeavours to start the process of reclassifying employees to their appropriate classifications as soon as possible, this may address some of the bargaining issues raised in the AMWU’s wage proposal. A part of the AMWU’s contention for a higher pay rate is to seek remuneration for the employees who have not been paid at the correct classification.

1. If the proposed Agreement is voted down, the Agreement will likely be subject to an intractable bargaining declaration. The bargaining period of this Agreement has been 11 months, and further attempts to bargain including taking protected industrial action, and further consultation meetings have been ineffectual. The first year of the proposed Agreement has nearly been completed. An intractable bargaining declaration would only lengthen the bargaining process.

1. If the Agreement is still not agreed to, the matter may be subject to an intractable bargaining workplace determination. This means that the bargaining period and bargaining process would be open to review and leaves the Commission to determine the terms and conditions of this Agreement. I do not foresee much benefit for both parties undertaking this route.

1. By voting to approve the Agreement, the employees of Reliance will receive a pay increase and avoid uncertainty arising from continual negotiations.

DEPUTY PRESIDENT

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