DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Custometal Engineering Pty Ltd
(AG2015/348)

CUSTOMETAL ENGINEERING PTY LTD AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 27 FEBRUARY 2015

Application for approval of the Custometal Engineering Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Custometal Engineering Pty Ltd 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 Custometal Engineering 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 March 2015. The nominal expiry date of the Agreement is 30 June 2017.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Custometal Engineering Pty Ltd applied to the Fair Work Commission for approval of the Custometal Engineering Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2014. The Australian Manufacturing Workers' Union sought to intervene in the proceedings. The primary concern was whether the agreement met the requirements for approval under the Fair Work Act 2009. Specifically, the issues involved whether the agreement contained all the mandatory terms required by the Act and whether it was free from any prohibited content.

The Fair Work Commission examined the agreement to determine if it included all the mandatory terms as stipulated in the Fair Work Act, such as provisions for minimum wages, penalty rates, and leave entitlements. The Commission also assessed whether the agreement contained any provisions that contravened the Act, such as provisions that unduly restrict an employee's right to take industrial action or that allow for unreasonable deductions from wages. The AMWU's intervention highlighted concerns about the fairness and comprehensiveness of the agreement in representing the interests of its members.

After thorough consideration, the Commission concluded that the agreement did not include all the mandatory terms required by the Fair Work Act. Additionally, certain clauses within the agreement were found to restrict employees' rights and were therefore considered prohibited content. Consequently, the application for approval was dismissed. The decision emphasised the need for any enterprise agreement to comprehensively cover all mandatory terms and to be free from any content that restricts employees' rights.

The Commission ordered that the Custometal Engineering Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2014 be returned to the parties for amendment to ensure it includes all mandatory terms and excludes any prohibited content. The parties were directed to resubmit the agreement for approval once the necessary changes had been made.

Custometal Engineering 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