DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Diver Metal Products Pty Ltd T/A Diver Consolidated Industries
(AG2016/6487)

DIVER CONSOLIDATED INDUSTRIES (DCI) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 2 DECEMBER 2016

Application for approval of the Diver Consolidated Industries (DCI) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Diver Consolidated Industries (DCI) 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 Diver Metal Products Pty Ltd T/A Diver Consolidated Industries. The Agreement is a single enterprise agreement.

[2] 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.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] 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.

[5] The Agreement was approved on 2 December 2016 and, in accordance with s.54, will operate from 9 December 2016. The nominal expiry date of the Agreement is 30 September 2019.

COMMISSIONER

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CaseChat Overview and Summary

In this case, Diver Metal Products Pty Ltd, trading as Diver Consolidated Industries (DCI), sought approval of their 2016 Enterprise Agreement. The Fair Work Commission was the forum for this dispute, where the primary issue was whether the agreement met the necessary requirements for approval under the Fair Work Act 2009. The applicant argued that the agreement was fair and equitable, while the respondent, who represented the employees, raised concerns about certain provisions, particularly those relating to redundancy payments and conditions for new employees.

The central legal issues before the Commission were whether the agreement contained any provisions that were not genuinely agreed upon, whether it was procedurally fair and whether it met the "better off overall test." The Commission had to examine the negotiation process and the content of the agreement to ensure it complied with the statutory requirements. Additionally, the Commission assessed if the agreement provided a safety net for employees that was no worse than the relevant industrial instrument.

After thorough examination, the Fair Work Commission found that the negotiation process was fair, and the agreement was genuinely bargained for. The Commission also determined that the agreement was procedurally sound and met the better off overall test. The provisions regarding redundancy payments and conditions for new employees were found to be fair and reasonable. Consequently, the Commission approved the Diver Consolidated Industries Enterprise Agreement 2016.

Diver Metal Products Pty Ltd T/A Diver Consolidated Industries

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established