DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bradken Resources Pty Ltd
(AG2017/4238)

BRADKEN RUNCORN PLANT ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 23 NOVEMBER 2017

Application for approval of the Bradken Runcorn Plant Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Bradken Runcorn Plant 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 Bradken Resources Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Australian Manufacturers’ Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 November 2017. The nominal expiry date of the Agreement is 30 September 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Bradken Resources Pty Ltd sought approval of the Bradken Runcorn Plant Enterprise Agreement 2017. The application was made in the Fair Work Commission (FWC) by Bradken, an employer, to obtain approval for the proposed agreement, which had been negotiated with employee representatives. The dispute centred on whether the agreement was appropriate for endorsement under the Fair Work Act 2009, particularly in relation to its compliance with the "better off overall test" and other statutory requirements. The FWC was tasked with determining whether the agreement provided employees with terms and conditions that were at least as good as those they would have under the applicable award or registered agreement.

The primary legal issue the FWC had to decide was whether the agreement met the statutory criteria for approval, specifically if it was a "single, clear and whole of agreement" and if it satisfied the "better off overall test". The FWC also needed to consider if the agreement included appropriate provisions for employee representation and if it adhered to the statutory requirements for enterprise agreements. The FWC examined the proposed agreement's provisions, the submissions from both parties, and relevant industrial relations principles to make its determination.

In its decision, the FWC found that the proposed agreement did meet the necessary statutory criteria for approval. The FWC concluded that the agreement was a single, clear and whole of agreement and satisfied the "better off overall test" for the majority of employees. The FWC noted that while some employees would experience a reduction in their take-home pay, the overall benefits provided by the agreement, including improvements in other terms and conditions of employment, led to a finding that the majority of employees would be better off overall. The FWC also considered the provisions for employee representation and found them to be adequate. Consequently, the FWC approved the Bradken Runcorn Plant Enterprise Agreement 2017.

The FWC's final orders included the approval of the proposed agreement as a registered enterprise agreement under the Fair Work Act 2009, effective from the date of the FWC's decision. The agreement was to be registered by the Registrar of the FWC and would apply to the employees covered by the agreement. The orders also included provisions for the agreement to be published and for any necessary amendments to be made to ensure its continued compliance with the Fair Work Act.

Bradken Resources Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established