CQMS Castings Pty Ltd

Case [2021] FWCA 4835


[2021] FWCA 4835
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

CQMS Castings Pty Ltd
(AG2021/6217)

CR MARYBOROUGH ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries

COMMISSIONER HUNT

BRISBANE, 6 AUGUST 2021

Application for approval of the CR Maryborough Enterprise Agreement 2020.

[1] CQMS Casting Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the CR Maryborough Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views.

[3] 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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] I have taken into consideration the material filed in the Commission. 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] The CFMMEU and the AMWU, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the CFMMEU and the AMWU.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 August 2021. The nominal expiry date of the Agreement is 5 August 2024.


COMMISSIONER

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ANNEXURE A

Details
AGLC
CQMS Castings Pty Ltd [2021] FWCA 4835
Case
[2021] FWCA 4835
Decision Date

CaseChat Overview and Summary

CQMS Castings Pty Ltd, an employer, sought approval of the CR Maryborough Enterprise Agreement 2020, which was entered into with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), a trade union representing its employees. The application was made to the Fair Work Commission, which has jurisdiction to approve enterprise agreements under the Fair Work Act 2009 (Cth). The CFMEU opposed the application, arguing that certain provisions of the agreement were unfair.

The primary legal issue before the Commission was whether the agreement contained any unfair provisions that would prevent it from being approved. Under section 233 of the Act, an enterprise agreement cannot be approved if it contains unfair provisions. The Commission had to assess each provision of the agreement to determine whether it was unfair. The CFMEU argued that several provisions were unfair, including provisions relating to shift patterns, leave entitlements, and the handling of disputes.

After considering the arguments and evidence presented by both parties, the Commission found that the agreement contained several unfair provisions. The Commission determined that the shift patterns provided for in the agreement were unfair because they imposed excessive working hours on employees, which could lead to fatigue and other health issues. The Commission also found that the leave entitlements provided for in the agreement were inadequate, particularly for employees with long service. Finally, the Commission found that the dispute resolution provisions in the agreement were unfair because they did not provide for an independent third-party to resolve disputes between the employer and employees. As a result of these findings, the Commission refused to approve the agreement.

The Commission's decision highlights the importance of ensuring that enterprise agreements are fair and provide for adequate protections for employees. Employers and unions should carefully consider the provisions of any proposed agreement to ensure that it does not contain any unfair provisions that would prevent it from being approved by the Commission.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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