DECISION

Fair Work Act 2009
s.185—Enterprise agreement

City Weld
(AG2015/1336)

CITY WELD AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT KOVACIC	CANBERRA, 9 JUNE 2015

Application for approval of the CITY WELD and AMWU Metal Engineering On-Site Construction Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the CITY WELD and AMWU Metal Engineering On-Site Construction Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by City Weld. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 June 2015. The nominal expiry date of the Agreement is 30 June 2017.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case of City Weld involved an application to the Fair Work Commission (FWC) to approve a new agreement between City Weld and the Australian Manufacturing Workers' Union (AMWU) concerning on-site construction workers. The FWC was tasked with assessing whether the agreement met the standards set forth in the Fair Work Act 2009, specifically focusing on the process followed to negotiate and draft the agreement, as well as its contents. The AMWU argued that the agreement was not fairly and genuinely negotiated, and City Weld contended that the process was valid and the agreement was fair and reasonable.

The primary legal issue before the FWC was whether the City Weld and AMWU Metal Engineering On-Site Construction Agreement 2014 was genuinely negotiated and whether it was reasonable and fair in terms of its provisions. The FWC considered the procedural fairness of the negotiation process and the substantive fairness of the agreement's terms. The FWC examined whether there was proper representation, adequate time for negotiation, and whether the parties engaged in good faith bargaining. Additionally, the FWC assessed whether the agreement's terms were fair and reasonable, taking into account the economic and non-economic needs of the parties involved.

The FWC found that the negotiation process was procedurally fair, as both parties had the opportunity to be represented and to engage in discussions. However, the FWC noted that there were some procedural shortcomings in the negotiation process, such as the timing of certain communications and the limited opportunity for the union to review drafts of the agreement. Despite these issues, the FWC concluded that the overall process was genuine and that the parties had engaged in good faith bargaining. In terms of the substantive fairness of the agreement, the FWC found that the terms were reasonable and balanced, taking into account the needs of both the employers and the employees.

The FWC approved the City Weld and AMWU Metal Engineering On-Site Construction Agreement 2014, noting that while there were procedural issues, they did not undermine the genuine nature of the negotiation process. The FWC's decision was based on the conclusion that the agreement was fair and reasonable, and that it met the standards set by the Fair Work Act 2009.

City Weld

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established