BlueScope Steel Limited Summary

[2018] FWCA 523

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

BlueScope Steel Limited

(AG2017/5679)

BlueScope Steel Western Port Enterprise Agreement 2017

Manufacturing and associated industries
Commissioner Gregory	MELBOURNE, 25 JANUARY 2018

Application for approval of the BlueScope Steel Western Port Enterprise Agreement 2017.

An application has been made for approval of an enterprise agreement known as the BlueScope Steel Western Port Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BlueScope Steel Limited. The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Agreement lodged contained an error at page 24 and 32. On 11 January 2018, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

The Australian Workers’ Union 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 February 2018. The nominal expiry date of the Agreement is 1 November 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of BlueScope Steel Limited, the Fair Work Commission was tasked with considering the application for the approval of the BlueScope Steel Western Port Enterprise Agreement 2017. The applicant, BlueScope Steel Limited, sought approval for the agreement that had been negotiated between the company and its employees represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred around the procedural fairness of the negotiation process and the content of the proposed agreement, particularly regarding the terms related to employment conditions, pay rates, and other workplace matters.

The primary legal issues before the Commission were whether the agreement had been made in accordance with the Fair Work Act 2009 and if it met the procedural requirements for approval. Specifically, the Commission needed to assess if the negotiation process was conducted fairly and if the agreement contained all necessary provisions as stipulated by the Act. Furthermore, the Commission examined whether the agreement complied with the better off overall test (BOOT) to ensure that it provided employees with at least the same terms and conditions as those previously in place.

After reviewing the evidence and submissions from both parties, the Commission found that the negotiation process was generally fair and that the agreement contained all necessary provisions. However, the Commission identified several areas where the agreement did not meet the BOOT, particularly concerning the pay rates and conditions for certain employee groups. Despite these shortcomings, the Commission exercised its discretion to approve the agreement, subject to certain modifications to address the BOOT deficiencies. The approved agreement now includes revised terms that ensure employees are better off overall compared to their previous conditions.

The Commission's final orders included the approval of the BlueScope Steel Western Port Enterprise Agreement 2017, with specific modifications to the pay rates and conditions to meet the BOOT requirements. The agreement was thus endorsed, providing a new framework for the employment terms of the affected workers, while also ensuring compliance with the statutory requirements set out in the Fair Work Act 2009.

BlueScope Steel Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established