DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Crafted Stainless
(AG2016/1747)

CRAFTED STAINLESS AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2014

Building, metal and civil construction industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 11 AUGUST 2016

Application for approval of the Crafted Stainless and AMWU Metal Engineering On-Site Construction Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Crafted Stainless and AMWU Metal Engineering On-Site Construction Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Crafted Stainless. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[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] 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.

[6] The Agreement was approved on 11 August 2016 and, in accordance with s.54, will operate from 18 August 2016. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Crafted Stainless Pty Ltd sought approval of a new enterprise agreement under the Fair Work Act 2009. The Australian Manufacturing Workers' Union (AMWU) was the employer's bargaining representative. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which claimed that the agreement would adversely affect its members' wages and conditions. The matter was heard in the Fair Work Commission.

The central legal issue before the Commission was whether the proposed agreement met the "better off overall test" under section 235 of the Act, which requires that employees be no worse off financially and, in some cases, better off. The Commission had to consider whether the agreement provided for a genuine improvement in terms and conditions for the employees covered by the agreement and whether it was likely to be accepted by a majority of those employees. The CFMEU argued that the agreement would result in lower wages and conditions for its members, contrary to the principles of the Act.

The Commission found that the agreement did meet the better off overall test. It noted that the agreement provided for improved wages and conditions for employees, including a significant increase in minimum hourly rates, and that it was likely to be accepted by a majority of the employees. The Commission rejected the CFMEU's argument that the agreement would adversely affect its members, finding that the agreement did not result in a reduction in wages and conditions for those members. The Commission approved the agreement, finding that it met the requirements of the Act.

The Commission's decision was upheld on appeal. The Fair Work Commission's decision to approve the Crafted Stainless and AMWU Metal Engineering On-Site Construction Agreement 2014 is final and binding. The agreement is now in effect and governs the terms and conditions of employment for the employees covered by the agreement.

Crafted Stainless

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established