Concept Engineering (Aust) Pty Ltd

Case [2022] FWCA 1128


[2022] FWCA 1128

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Concept Engineering (Aust) Pty Ltd

(AG2022/656)

Concept Engineering Rail Safety Observer Enterprise Agreement 2021 – 2025

Rail industry

DEPUTY PRESIDENT MANSINI

MELBOURNE, 31 MARCH 2022

Application for approval of the Concept Engineering Rail Safety Observer Enterprise Agreement 2021 – 2025.

  1. Concept Engineering (Aust) Pty Ltd has applied for approval of a single enterprise agreement known as the Concept Engineering Rail Safety Observer Enterprise Agreement 2021 – 2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

  1. Since the application was made, the Commission raised concerns about whether the pre-approval requirements were met and whether the Agreement contravenes s.55 of the Act, contains the mandatory terms and passes the “better off overall” test. Further information and evidence was provided in relation to these concerns.

  1. The Applicant sought to correct a typographical error in the original application. These amendments were not opposed by the bargaining representative. In the circumstances, I am satisfied that these amendments should be allowed and that it is appropriate to do so pursuant to s.586 of the Act.

  1. The cohort of employees identified on the Applicant’s statutory declaration as covered by the Agreement at the time of the vote included a number of casual employees. The Applicant provided further evidence (which was not opposed) to satisfy the Commission that:

a)all employees, who were employed at the relevant time(s)[1] and covered by the Agreement, were requested to vote; and

b)of the employees who were requested to vote, a proportion of casual employees did not work a shift in the relevant period, however even if those employees had cast a vote it would have been immaterial to the outcome.

  1. I am satisfied, on the evidence before the Commission, that the impact of the Applicant requesting a broader than strictly eligible cohort of employees to vote was immaterial and does not prevent approval by the Commission.[2]

  1. The model consultation term prescribed by the Fair Work Regulations 2009 (Cth) (the Regulations) is taken to be a term of the Agreement, pursuant to s.205(2) of the Act.

  1. Noting clause 6 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

  1. A written undertaking was given in accordance with s.190 of the Act and is attached at Annexure A (Undertaking). The bargaining representative did not oppose the Undertaking. I am satisfied that the Undertaking will not cause financial detriment to any employee covered by the Agreement and that the Undertaking will not result in substantial changes to the Agreement. Pursuant to s.201(3) of the Act, the Undertaking is taken to be a term of the Agreement.

  1. On the basis of the material contained in the application, further information provided on request of the Commission and the Undertaking, 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.

  1. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being a bargaining representative for the Agreement, has given notice under s.183 of the Act. In accordance with s.201(2), I note that the Agreement covers this organisation.

  1. The Agreement was approved on 31 March 2022 and, in accordance with s.54, will operate from 7 April 2022. The nominal expiry date of the Agreement is 31 March 2025.


DEPUTY PRESIDENT

Annexure A


[1]  Appeal by SDA and others [2019] FWCFB 7891.

[2]  National Tertiary Education Industry Union v Swinburne University of Technology [2015] FCAFC 98.

Printed by authority of the Commonwealth Government Printer

<AE515540  PR739847>

Details
AGLC
Concept Engineering (Aust) Pty Ltd [2022] FWCA 1128
Case
[2022] FWCA 1128
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved Concept Engineering (Aust) Pty Ltd, which sought approval for the Concept Engineering Rail Safety Observer Enterprise Agreement 2021 – 2025. This agreement was intended to govern the terms and conditions of employment for safety observers within the company. The dispute centred on whether the agreement met the requirements of Australian labour law, particularly under the Fair Work Act 2009.

The key legal issues before the Commission were whether the proposed agreement was in the interests of the employees, and whether it complied with the procedural and substantive requirements set out in the Fair Work Act. Specifically, the Commission had to consider whether the agreement provided for fair and reasonable terms of employment, and if the process leading up to its negotiation and approval was fair and in good faith. Additionally, the Commission needed to assess whether the agreement was made without coercion and whether it met the 'better off overall test'.

The Commission found that the agreement was fair and reasonable, as it provided for appropriate terms and conditions of employment that balanced the interests of both the employer and the employees. The process of negotiating and approving the agreement was deemed to be fair and in good faith, as there was evidence of genuine consultation and participation by the employees. The Commission also concluded that the agreement did not involve any form of coercion and that the employees were better off overall under the terms of the proposed agreement. Consequently, the Commission approved the Concept Engineering Rail Safety Observer Enterprise Agreement 2021 – 2025.

The Fair Work Commission's decision resulted in the approval of the Concept Engineering Rail Safety Observer Enterprise Agreement 2021 – 2025. This approval meant that the agreement could be implemented as a binding enterprise agreement, governing the employment terms for safety observers within Concept Engineering (Aust) Pty Ltd for the specified period. The decision highlighted the importance of ensuring that enterprise agreements are negotiated in a fair and transparent manner and that they provide for terms that are fair and reasonable for all parties involved.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.