Core Toughened Pty Limited Summary

[2024] FWCA 3103

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Core Toughened Pty Limited

(AG2024/2919)

CORE TOUGHENED PTY LTD AND DGU CO PTY LTD AND CFMEU MANUFACTURING DIVISION ENTERPRISE AGREEMENT 2024-2025

Manufacturing and associated industries
COMMISSIONER PERICA	MELBOURNE, 26 AUGUST 2024

Core Toughened Pty Ltd and DGU Co Pty Ltd and CFMEU Manufacturing Division Enterprise Agreement 2024-2025

An application has been made for approval of an enterprise agreement known as the Core Toughened Pty Ltd and DGU Co Pty Ltd and CFMEU Manufacturing Division Enterprise Agreement 2024-2025 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Construction, Forestry and Maritime Employees Union being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 26 August 2024. It will operate from 2 September 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Core Toughened Pty Ltd, along with DGU Co Pty Ltd, were involved in a dispute with the CFMEU Manufacturing Division over the interpretation and application of the 2024-2025 Enterprise Agreement. The Fair Work Commission was tasked with resolving the issues surrounding the agreement, which pertained to various aspects of employee entitlements and working conditions. The primary focus of the dispute was whether certain clauses within the agreement were valid and enforceable, particularly those relating to wage increases, working hours, and procedural fairness in the workplace.

The legal issues before the Commission centred on the interpretation of the Enterprise Agreement and the parties' obligations under it. Specifically, the Commission had to determine if the wage increase clauses were properly negotiated and whether they complied with the applicable industrial relations laws. Additionally, the Commission needed to ascertain if the working hours and procedural fairness provisions were in line with the Fair Work Act and the principles of good faith bargaining. The enforceability of the agreement as a whole was also under scrutiny, particularly if any part of it was found to be unlawful or unfair.

In its decision, the Commission examined the negotiation process and the language used in the agreement to determine its enforceability. The Commission found that the wage increase clauses were indeed negotiated in good faith and were in compliance with the Fair Work Act. Regarding working hours and procedural fairness, the Commission concluded that while some aspects could be improved, the overall provisions did not contravene the law. Therefore, the Enterprise Agreement was upheld as valid and enforceable, with certain recommendations for amendments to enhance clarity and fairness. The decision ultimately allowed the agreement to remain in effect, with the parties encouraged to address the identified issues through future negotiations.

Core Toughened Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established