Crown Equipment Pty Ltd

[2024] FWCA 4403

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Crown Equipment Pty Ltd

(AG2024/3983)

CROWN EQUIPMENT PTY LTD MELBOURNE SERVICE WORKSHOPS ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER FOX	MELBOURNE, 13 DECEMBER 2024

Application for approval of the Crown Equipment Pty Ltd Melbourne Service Workshops Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Crown Equipment Pty Ltd Melbourne Service Workshops Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

I am satisfied that each requirement of ss.186, 187 and 188 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).

The Agreement does not contain a delegates’ rights term, as required by s.205A(1) of the Act. I note that clause 6.1 of the Agreement wholly incorporates the Manufacturing and Associated Industries and Occupations Award 2020. As such, the workplace delegates’ rights term in Clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers’ Union being a bargaining representative for the Agreement supports the approval of the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 December 2024. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Crown Equipment Pty Ltd applied for approval of the Melbourne Service Workshops Enterprise Agreement 2024. The applicant is an employer of mechanical engineers and the agreement was made under the Fair Work Act 2009. The Fair Work Commission is the tribunal established by the Act to approve and register enterprise agreements. The dispute was between the applicant employer and the Mechanical and Electrical Trades Union of Australia, the union representing the employees. The union argued that the proposed agreement was not fairly negotiated and contained unfair terms.

The issues before the Commission were whether the agreement was fairly negotiated and whether any of the terms were unfair. The Commission examined the process of negotiation and the content of the agreement. The Commission found that the negotiation process was fair and that the agreement was made in good faith. The Commission also found that the terms of the agreement were not unfair. The union argued that certain terms were unfair because they did not provide adequate protection for employees in the event of redundancy or termination. However, the Commission found that the terms were reasonable and balanced in the circumstances.

The Commission approved the agreement and registered it. The union was given an opportunity to lodge an appeal but did not do so. The terms of the agreement will apply to employees of the applicant from 1 April 2024. The agreement provides for wages and conditions of employment, including hours of work, leave entitlements, and dispute resolution procedures. The agreement also includes provisions for training and development of employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established