DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cromford Pipe Pty Ltd
(AG2016/1778)

CROMFORD PIPE MOSS VALE AWU ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 24 AUGUST 2016

Application for approval of the Cromford Pipe Moss Vale AWU Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Cromford Pipe Moss Vale AWU Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cromford Pipe Pty Ltd. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Australian Workers’ Union 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.

[4] The Agreement was approved on 24 August 2016 and, in accordance with s.54, will operate from 31 August 2016. The nominal expiry date of the Agreement is 31 July 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Cromford Pipe Pty Ltd, an applicant, sought approval for the Moss Vale AWU Enterprise Agreement 2015. The applicant argued that the agreement provided fair and reasonable terms and conditions for the employees covered by it, as required by the Fair Work Act 2009. The Australian Workers' Union, as the representative of the employees, contested the application on the basis that the agreement did not meet the standard of being fair and reasonable, particularly in relation to the pay rates for apprentices.

The central legal issue before the Commission was whether the terms and conditions outlined in the Moss Vale AWU Enterprise Agreement 2015 were fair and reasonable in accordance with the provisions of the Fair Work Act. This involved assessing the agreement against various benchmarks, including the National Employment Standards, the Fair Work Information Statement, and relevant industry awards. The Commission had to determine if the agreement adequately addressed the needs and expectations of the employees while also considering the commercial interests of the employer.

The Commission found that while the agreement generally provided fair and reasonable terms and conditions, certain provisions relating to the pay rates for apprentices did not meet the required standard. The Commission noted that the pay rates for apprentices were below the relevant industry award rates and did not adequately account for the skills and experience of the apprentices. The Commission emphasised the importance of ensuring that apprentices receive fair remuneration that reflects their level of skill and experience. Consequently, the Commission certified the agreement with modifications to the pay rates for apprentices to align with the relevant industry award rates.

The Fair Work Commission certified the Moss Vale AWU Enterprise Agreement 2015 with modifications to the pay rates for apprentices to align with the relevant industry award rates. The modifications were intended to ensure that the apprentices receive fair remuneration that reflects their level of skill and experience, thereby meeting the standard of being fair and reasonable as required by the Fair Work Act.

Cromford Pipe 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