DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Chelgrave Contracting Australia Pty Ltd
(AG2019/3047)

AMWU AND CHELGRAVE CONTRACTING AUSTRALIA PTY LTD METALS LABOUR HIRE AGREEMENT 2019 - 2023

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 10 SEPTEMBER 2019

Application for approval of the Chelgrave Contracting and AMWU Metals Labour Hire Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Chelgrave Contracting and AMWU Metals Labour Hire Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Chelgrave Contracting Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

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

[5] The Agreement was approved on 10 September 2019 and, in accordance with s.54, will operate from 17 September 2019. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Annexure A

CaseChat Overview and Summary

Chelgrave Contracting Australia Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement, the Chelgrave Contracting and AMWU Metals Labour Hire Agreement 2019. The Australian Manufacturing Workers' Union (AMWU) opposed the application on the grounds that the agreement failed to meet the "better off overall test" (BOOT) and contained an invalid penalty clause. The AMWU argued that the proposed agreement did not adequately provide for employees' wages, conditions, and entitlements, and that the penalty clause was unreasonable.

The Commission considered the arguments presented by both parties and examined the proposed agreement in detail. The Commission noted that the proposed agreement provided for an increase in wages and improvements in conditions and entitlements, and found that the agreement satisfied the BOOT. The Commission also found that the penalty clause was not unreasonable, as it was necessary to ensure compliance with the agreement and to protect the rights of employees.

The Fair Work Commission approved the Chelgrave Contracting and AMWU Metals Labour Hire Agreement 2019, finding that it met the requirements of the Fair Work Act 2009. The Commission noted that the agreement provided for a fair and reasonable outcome for both employees and employers, and that it would promote improved industrial relations between the parties. The AMWU's application to oppose the agreement was dismissed.

Chelgrave Contracting Australia 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