Degree C Pty Ltd

[2018] FWCA 7514

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Degree C Pty Ltd

(AG2018/4629)

Degree C Pty Ltd Enterprise Agreement 2018 - 2022[Fabrication Division]

Manufacturing and associated industries
Commissioner Harper-Greenwell	MELBOURNE, 11 DECEMBER 2018

Application for approval of the Degree C Pty Ltd Enterprise Agreement 2018-2022 [Fabrication Division].

An application has been made for approval of an enterprise agreement known as the Degree C Pty Ltd Enterprise Agreement 2018-2022 [Fabrication Division] (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Degree C Pty Ltd. The Agreement is a single enterprise agreement.

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.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 6 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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.

The Agreement was approved on 11 December 2018 and, in accordance with s.54, will operate from 18 December 2018. The nominal expiry date of the Agreement is 26 August 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Degree C Pty Ltd, represented by its employees, applied to the Fair Work Commission for approval of an enterprise agreement. The agreement, covering the period 2018-2022, was submitted for the Fabrication Division of the company. The dispute centred on whether the proposed terms and conditions of employment in the agreement were fair and reasonable. The Fair Work Commission was tasked with determining the validity of the agreement under the Fair Work Act 2009.

The court examined several key legal issues, including whether the agreement was genuinely negotiated, whether it provided for procedural fairness and the protection of employees' interests, and whether it complied with the "better off overall test" which requires that the agreement must be at least as good as the applicable award or other industrial instrument. The court also considered if there were any unfair terms that would render the agreement unlawful.

The Fair Work Commission found that the agreement had been genuinely negotiated and met the procedural fairness requirements. It also determined that the agreement complied with the "better off overall test" as employees were provided with benefits that were at least as good as, if not better than, those available under the applicable award. The Commission found no unfair terms in the agreement, hence it was fair and reasonable. As a result, the Commission approved the agreement, confirming its compliance with the Fair Work Act 2009.

The court ordered the approval of the Degree C Pty Ltd Enterprise Agreement 2018-2022 for the Fabrication Division, recognising its compliance with the statutory requirements and the protection of employees' rights. This decision ensured that the agreement would be binding on all parties, providing a framework for the terms and conditions of employment during the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established