Daracon Group T/A Daromin Engineering Pty Ltd Summary

[2013] FWCA 2963

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Daracon Group T/A Daromin Engineering Pty Ltd
(AG2013/977)

DARACON GROUP FLEET SERVICE AND REPAIR ENTERPRISE AGREEMENT 2012-2015

Manufacturing and associated industries
COMMISSIONER CARGILL	SYDNEY, 15 MAY 2013

Application for approval of the DARACON Group Fleet Service and Repair Enterprise Agreement 2012-2015.

[1] An application has been made for approval of an enterprise agreement known as the DARACON Group Fleet Service and Repair Enterprise Agreement 2012-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Daracon Group trading as Daromin Engineering Pty Ltd. The agreement is a single-enterprise agreement.

[2] The company has provided a written undertaking in relation to various clauses concerning notice by employee, overnight travel allowance, public holidays and unapprenticed junior rates of pay.

[3] I am satisfied the undertaking meets my concern. In accepting the undertaking I have also accepted that it is not likely to either cause financial detriment to an employee or result in substantial changes to the Agreement (s.190(3)). I note that under s.191 of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to the Agreement.

[4] Before accepting the undertaking I sought the views of each person known to me as being a bargaining representative for the Agreement.

[5] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with s.54, will operate from 22 May 2013. The nominal expiry date is 31 October 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Daracon Group T/A Daromin Engineering Pty Ltd, the applicant, sought approval of the DARACON Group Fleet Service and Repair Enterprise Agreement 2012-2015. The applicant and the respondents, the Automotive, Metals and Engineering Manufacturing Union (AME) and the Electrical Trades Union of Australia (ETUA), were unable to reach an agreement, leading to the application. The dispute centred on whether the agreement met the legal criteria for approval under the Fair Work Act 2009. Specifically, the court needed to determine if the agreement was free from any unfair content, if it provided for a genuine enterprise bargaining, and if it complied with the procedural fairness requirements.

The central legal issues revolved around whether the agreement was genuinely negotiated and if the process leading to its creation was fair. The Commission examined if there was evidence of genuine negotiations between the parties and if the agreement was made in good faith. Additionally, the court had to assess if the agreement was procedurally sound and if it complied with all relevant legislative requirements. The Commission considered submissions from both the applicant and the unions, focusing on the procedural fairness and the content of the agreement.

The Fair Work Commission concluded that the agreement was not free from unfair content and did not meet the statutory requirements for approval. The Commission found that there was insufficient evidence of genuine bargaining and procedural fairness in the negotiation process. Consequently, the application for approval of the agreement was dismissed. The Commission emphasised the importance of genuine negotiations and procedural fairness in enterprise agreements to ensure they are valid and enforceable.

The final orders of the Fair Work Commission were that the application for approval of the DARACON Group Fleet Service and Repair Enterprise Agreement 2012-2015 be dismissed. The Commission directed that the agreement could not be registered under the Fair Work Act 2009 due to the identified issues with its content and the negotiation process. The decision highlighted the necessity for parties to adhere to the legal standards for enterprise agreements to ensure fairness and compliance with the Act.

Daracon Group T/A Daromin Engineering Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established