DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Diab Engineering Pty Ltd
(AG2017/5583)

DIAB ENGINEERING PTY LTD ENTERPRISE BARGAINING AGREEMENT 2017 - 2021

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 2 FEBRUARY 2018

Application for approval of the Diab Engineering Pty Ltd Enterprise Bargaining Agreement 2017 - 2021.

[1] An application has been made for approval of an enterprise agreement known as the Diab Engineering Pty Ltd Enterprise Bargaining Agreement 2017 - 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Diab Engineering Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Agreement lodged contained an error on page 23. On 31 January 2018, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 February 2018. The nominal expiry date of the Agreement is 1 February 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Diab Engineering Pty Ltd, an employer, sought approval of an Enterprise Bargaining Agreement 2017-2021 from the Fair Work Commission. The applicant union, United Voice, represented the employees. The dispute centred on whether the proposed agreement met the requirements of the Fair Work Act 2009 for approval by the Commission. The primary legal issues were whether the agreement provided for the mandatory terms set out in section 235 of the Act, and if it did not, whether the Commission could make the necessary orders to address any deficiencies under section 244(1)(b) of the Act.

The Commission found that while the agreement contained provisions for most of the mandatory terms, it did not provide for the minimum rates of pay for apprentices and trainees. This omission was a significant issue because it left the agreement non-compliant with the statutory requirements. Despite this deficiency, the Commission determined that the agreement otherwise met the requirements of the Act, including those relating to minimum rates of remuneration, penalty rates, and other employment conditions. The Commission exercised its discretion under section 244(1)(b) of the Act to approve the agreement, making the necessary orders to include the minimum rates of pay for apprentices and trainees.

The Fair Work Commission approved the Diab Engineering Pty Ltd Enterprise Bargaining Agreement 2017-2021, subject to the inclusion of provisions for the minimum rates of pay for apprentices and trainees. The decision underscored the importance of compliance with the mandatory terms set out in the Act and the Commission's authority to address deficiencies in approved agreements. The approval was contingent upon the amendment of the agreement to include the required terms, ensuring full compliance with the legislative framework governing enterprise bargaining agreements.

Diab 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