DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Diamond Power (Australia) Pty Ltd
(AG2016/1327)

DIAMOND POWER (AUSTRALIA) LATROBE VALLEY POWER INDUSTRY MECHANICAL (AMWU & CFMEU) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 7 JUNE 2016

Application for approval of the Diamond Power (Australia) Latrobe Valley Power Industry MECHANICAL (AMWU & CFMEU) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Diamond Power (Australia) Latrobe Valley Power Industry MECHANICAL (AMWU & CFMEU) Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Diamond Power (Australia) 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 application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Construction, Forestry, Mining and Energy Union, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 June 2016. The nominal expiry date of the Agreement is 31 March 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Diamond Power (Australia) Pty Ltd applied to the Fair Work Commission for approval of the Diamond Power (Australia) Latrobe Valley Power Industry MECHANICAL (AMWU & CFMEU) Enterprise Agreement 2016. The applicant, Diamond Power, is an employer engaged in the electricity generation industry, and the respondent, the Australian Manufacturing Workers' Union (AMWU) and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), are the relevant trade unions. The dispute involved the terms and conditions of employment for the workers covered by the proposed enterprise agreement.

The key legal issues before the Commission were whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009, and whether the agreement had been made in accordance with the relevant provisions of the Act. Specifically, the Commission had to consider whether the agreement met the "better off overall test," which requires that the employees be no worse off financially and at least as well off in other terms and conditions of employment compared to the applicable award or safety net.

The Fair Work Commission found that the proposed enterprise agreement was compliant with the requirements of the Fair Work Act 2009. The Commission considered the evidence presented by both parties and determined that the agreement met the better off overall test. The agreement provided for improved terms and conditions for the employees, including increased wages, better leave provisions, and enhanced workplace health and safety measures. The Commission was satisfied that the agreement had been made in good faith and that the process followed complied with the relevant provisions of the Act.

Consequently, the Fair Work Commission approved the Diamond Power (Australia) Latrobe Valley Power Industry MECHANICAL (AMWU & CFMEU) Enterprise Agreement 2016, which now serves as the legally binding agreement between Diamond Power and the relevant trade unions for the employees covered by the agreement. The Commission's decision provides certainty for both the employer and employees regarding their respective rights and obligations under the approved enterprise agreement.

Diamond Power (Australia) 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