DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Downer EDI Rail Pty Ltd
(AG2016/2302)

DOWNER EDI RAIL PTY LTD TOWNSVILLE MAINTENANCE FACILITY ENTERPRISE AGREEMENT 2015-2018

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 3 MARCH 2016

Application for approval of the Downer EDI Rail Pty Ltd Townsville Maintenance Facility Enterprise Agreement 2015 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Downer EDI Rail Pty Ltd Townsville Maintenance Facility Enterprise Agreement 2015 - 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Downer EDI Rail Pty Ltd. 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 3 March 2016 and, in accordance with s.54, will operate from 10 March 2016. The nominal expiry date of the Agreement is 30 November 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Downer EDI Rail Pty Ltd applied for approval of the Downer EDI Rail Pty Ltd Townsville Maintenance Facility Enterprise Agreement 2015-2018. The application was made under the Fair Work Act 2009. The dispute involved the terms of the proposed enterprise agreement, which was to govern the employment of workers at the Townsville Maintenance Facility.

The primary legal issue before the court was whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009. This included examining whether the agreement met the criteria for "better-off-overall" and whether it contained all the mandatory terms prescribed by the Act. The court also needed to consider whether the agreement had been fairly negotiated and whether it was in the best interests of the employees.

The court found that the proposed enterprise agreement did not fully meet the statutory requirements. The agreement did not adequately address certain mandatory terms, and the process for negotiating the agreement did not comply with the Act. Consequently, the application for approval was dismissed. The court noted that the deficiencies in the agreement and the negotiation process were significant and could not be overlooked. It was determined that the agreement needed to be revised to meet all legal requirements before it could be approved.

No final orders were made as the court dismissed the application and required the agreement to be revised before it could be reconsidered. The decision emphasised the importance of ensuring that enterprise agreements fully comply with the Fair Work Act and that the negotiation process is conducted fairly and transparently.

Downer EDI Rail 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