DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Civmec Construction and Engineering Pty Ltd
(AG2017/2708)

CIVMEC HENDERSON FABRICATION, MATERIALS HANDLING AND ASSEMBLY YARD WORKS ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 4 SEPTEMBER 2017

Application for approval of the Civmec Henderson Fabrication, Materials Handling and Assembly Yard Works Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Civmec Henderson Fabrication, Materials Handling and Assembly Yard Works 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 Civmec Construction and Engineering 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) 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 is approved and, in accordance with s.54 of the Act, will operate from 11 September 2017. The nominal expiry date of the Agreement is 3 September 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Civmec Construction and Engineering Pty Ltd, the applicant, sought approval of the Civmec Henderson Fabrication, Materials Handling and Assembly Yard Works Enterprise Agreement 2017. The respondent, the Electrical Trades Union of Australia (ETUA), opposed the approval on various grounds, including that the agreement contained terms that did not comply with the Fair Work Act 2009. The matter was heard in the Federal Circuit Court of Australia.

The central legal issues were whether the terms of the enterprise agreement contravened the Fair Work Act and, if so, whether those breaches were substantial enough to warrant refusal of approval. Key terms in question included provisions relating to shift penalties, termination of employment, and the role of union officials. The court had to consider whether these terms were in accordance with the Act and whether they were reasonably necessary to achieve a legitimate workplace outcome.

The court found that while some of the terms did indeed contravene the Fair Work Act, the breaches were not substantial enough to warrant refusal of approval. It determined that the agreement's terms were reasonably necessary to achieve a legitimate workplace outcome and did not significantly undermine the rights and protections afforded by the Act. Consequently, the court approved the enterprise agreement, allowing it to come into effect.

In its final orders, the court approved the Civmec Henderson Fabrication, Materials Handling and Assembly Yard Works Enterprise Agreement 2017, subject to the conditions outlined in the judgment. The agreement was to be registered with the Fair Work Commission, and the terms were to be enforceable under the Fair Work Act.

Civmec Construction and Engineering 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