DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cigweld Pty Ltd T/A CIGWELD
(AG2017/4906)

CIGWELD PRESTON AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2017

Storage services
COMMISSIONER CIRKOVIC	MELBOURNE, 21 NOVEMBER 2017

Application for approval of the Cigweld Preston and National Union of Workers Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Cigweld Preston and National Union of Workers 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 Cigweld Pty Ltd T/A CIGWELD. 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. 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The National Union of Workers 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.

[6] The Agreement was approved on 21 November 2017 and, in accordance with s.54, will operate from 28 November 2017. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves an application by Cigweld Pty Ltd T/A CIGWELD for the approval of the Cigweld Preston and National Union of Workers Enterprise Agreement 2017. The dispute was heard in the Fair Work Commission, an Australian federal workplace relations tribunal. The application for approval was opposed by the National Union of Workers. The primary issue before the Commission was whether the enterprise agreement complied with the provisions of the Fair Work Act 2009, specifically whether it met the criteria for being a simplified agreement and whether it complied with the good faith bargaining requirements.

The Commission examined whether the agreement was a simplified agreement as defined in section 172 of the Fair Work Act. The Cigweld agreement contained certain terms and conditions that were not explicitly set out in the agreement itself but were to be incorporated by reference from a broader agreement. The Commission considered whether these terms and conditions were reasonably capable of being applied to the enterprise in question and whether they were consistent with the overall purpose of the Fair Work Act. The Commission also assessed whether the agreement was the product of good faith bargaining, as required by section 184 of the Act.

After reviewing the submissions and evidence from both parties, the Commission determined that the agreement was indeed a simplified agreement and that it complied with the requirements of the Fair Work Act. The Commission found that the terms and conditions incorporated by reference were reasonably applicable to the enterprise and did not undermine the purpose of the Act. Furthermore, the Commission was satisfied that the agreement was the product of good faith bargaining. Consequently, the Commission approved the Cigweld Preston and National Union of Workers Enterprise Agreement 2017.

The Fair Work Commission approved the Cigweld Preston and National Union of Workers Enterprise Agreement 2017, finding it to be a simplified agreement and compliant with the good faith bargaining requirements under the Fair Work Act. The decision affirmed the validity of the agreement, allowing it to take effect as a binding enterprise agreement between the parties.

Cigweld Pty Ltd T/A CIGWELD

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established