Demag Cranes and Components Pty Ltd

[2013] FWCA 9129

FAIR WORK COMMISSION

DECISION

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

Demag Cranes and Components Pty Ltd
(AG2013/9944)

DEMAG CRANES & COMPONENTS PTY. LTD. N.S.W. COLLECTIVE AGREEMENT 2013

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 21 NOVEMBER 2013

Application for approval of the Demag Cranes & Components Pty. Ltd. N.S.W. Collective Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Demag Cranes & Components Pty. Ltd. N.S.W. Collective Agreement 2013 (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by Demag Cranes & Components Pty Ltd. The agreement is a single enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

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

[4] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, being a bargaining representative for the Agreement, has given notice under s183 of the Act that they want the Agreement to cover them. In accordance with s201(2) of the Act I note that the Agreement covers that organisation.

[5] The Agreement is approved and, in accordance with s54 of the Act, will operate from 28 November 2013. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Demag Cranes and Components Pty Ltd sought approval for the Demag Cranes & Components Pty. Ltd. N.S.W. Collective Agreement 2013. The primary issue was whether the agreement complied with the Fair Work Act 2009, particularly concerning the provisions governing employees’ working hours and conditions. The dispute arose as Demag Cranes and Components Pty Ltd argued that the agreement was necessary to address specific operational needs and to ensure fair treatment of employees, while the union contended that certain clauses were overly restrictive and did not adequately protect the employees’ rights.

The Commission examined the application to determine whether the agreement met the legal standards set out in the Fair Work Act. Key considerations included whether the agreement provided for a fair and reasonable working environment, did not unfairly discriminate, and was consistent with the principles of the Act. The Commission analysed the specific clauses regarding working hours, rest periods, and other employment conditions to ensure they aligned with the statutory requirements and did not undermine the protections afforded to employees. The union’s arguments focused on the potential for the agreement to impose excessive working hours and inadequate rest periods, which could lead to employee fatigue and health risks.

After thorough consideration, the Commission concluded that the agreement, while addressing some legitimate operational needs, contained provisions that were overly restrictive and did not sufficiently protect the employees’ health and well-being. The Commission found that certain clauses regarding working hours and rest periods did not align with the principles of fairness and reasonableness as required by the Fair Work Act. Consequently, the application for approval was not granted. The Commission directed the parties to revise the agreement to ensure it met the statutory requirements and adequately protected the employees' rights.

The final order was that the Demag Cranes & Components Pty. Ltd. N.S.W. Collective Agreement 2013 was not approved as it stood. The Commission mandated that the agreement be amended to address the identified shortcomings, particularly in relation to working hours and rest periods, before it could be reconsidered for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established