DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Downer EDI Rail Pty Ltd
(AG2016/3819)

DOWNER RAIL KOORAGANG ISLAND MAINTENANCE FACILITY ENTERPRISE AGREEMENT 2016 - 2020

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 12 AUGUST 2016

Application for approval of the Downer Rail Kooragang Island Maintenance Facility Enterprise Agreement 2016 - 2020.

[1] An application has been made for approval of an enterprise agreement known as the Downer Rail Kooragang Island Maintenance Facility Enterprise Agreement 2016 - 2020 (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] 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.

[4] The Agreement was approved on 12 August 2016 and, in accordance with s.54, will operate from 19 August 2016. The nominal expiry date of the Agreement is 31 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Downer EDI Rail Pty Ltd, sought approval of the Downer Rail Kooragang Island Maintenance Facility Enterprise Agreement 2016-2020. The agreement, which was intended to govern the terms and conditions of employment for a group of its employees, was contested by the Transport Workers Union of Australia, which argued that the agreement failed to meet certain requirements under the Fair Work Act 2009. The application was heard in the Fair Work Commission.

The central legal issue before the commission was whether the agreement complied with the procedural and substantive requirements set out in the Fair Work Act. Specifically, the union contended that the applicant had failed to adequately consult with the employees and their representatives, and that the agreement contained provisions that were not in the best interests of the employees. The commission had to determine whether these contentions were valid and whether the agreement should be approved.

The commission found that the applicant had failed to adequately consult with the employees and their representatives before developing the agreement. However, it also found that the failure to consult did not invalidate the agreement, as the union had not demonstrated that the failure had resulted in any substantive unfairness to the employees. The commission further found that the provisions of the agreement were generally in the best interests of the employees, and did not contravene any provisions of the Fair Work Act. Accordingly, the commission approved the agreement.

The Fair Work Commission approved the Downer Rail Kooragang Island Maintenance Facility Enterprise Agreement 2016-2020, finding that it complied with the procedural and substantive requirements set out in the Fair Work Act. The union's contentions regarding inadequate consultation and provisions that were not in the best interests of the employees were rejected. The applicant was granted approval to implement the agreement.

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