DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Civmec Construction & Engineering Pty Ltd
(AG2016/4395)

CIVMEC HENDERSON FABRICATION, MATERIALS HANDLING AND ASSEMBLY YARD WORKS ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 16 AUGUST 2016

Application for approval of the Civmec Henderson Fabrication, Materials Handling and Assembly Yard Works Enterprise Agreement 2016.

[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 2016 (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 & 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] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 August 2016. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Civmec Construction & Engineering Pty Ltd sought approval of the Civmec Henderson Fabrication, Materials Handling and Assembly Yard Works Enterprise Agreement 2016. The application was made to the Fair Work Commission (FWC), which is the body responsible for approving enterprise agreements under the Fair Work Act 2009. The applicant sought to have the agreement approved as a low-paid enterprise agreement, allowing it to be approved without a mandatory vote of the employees.

The primary legal issue before the FWC was whether the enterprise agreement met the requirements of a low-paid agreement under the Fair Work Act. An agreement is considered low-paid if it provides for minimum rates of pay that are no more than 20% above the relevant award rates. The court had to assess whether the agreement complied with this criterion and if it met other relevant criteria for low-paid agreements, including those concerning notice periods, penalty rates, and other employment conditions.

The FWC found that the enterprise agreement met the criteria for a low-paid agreement. The agreement provided for minimum rates of pay that were no more than 20% above the relevant award rates, and it included provisions for notice periods and penalty rates that complied with the Fair Work Act. The FWC also considered the views of the parties and the impact of the agreement on employees, finding that it was fair and reasonable in all the circumstances. The FWC approved the enterprise agreement as a low-paid agreement.

No further orders were made by the FWC. The enterprise agreement was approved, and the applicant could proceed with implementing the terms of the agreement. The employees covered by the agreement would be entitled to the benefits and conditions set out in the agreement, subject to any applicable awards or other industrial instruments.

Civmec Construction & 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