DECISION

Fair Work Act 2009
s.185—Enterprise agreement

EDMA Agencies Pty Ltd T/A Wexford Welding
(AG2019/4630)

EDMA AGENCIES PTY LTD AMWU ON-SITE CONSTRUCTION COLLECTIVE AGREEMENT FOR NSW 2018-2021

Building, metal and civil construction industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 31 DECEMBER 2019

Application for approval of the EDMA Agencies Pty Ltd AMWU On-Site Construction Collective Agreement for NSW 2018-2021.

[1] An application has been made for approval of an enterprise agreement known as the EDMA Agencies Pty Ltd AMWU On-Site Construction Collective Agreement for NSW 2018-2021 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

[5] Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 7 January 2020. The nominal expiry date of the Agreement is 30 September 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The parties in this case were EDMA Agencies Pty Ltd, trading as Wexford Welding, and the Australian Manufacturing Workers' Union (AMWU). The dispute centred on the approval of a proposed collective agreement between the employer and the union for the period 2018-2021, specifically for employees engaged in on-site construction work in New South Wales. The matter was heard in the Fair Work Commission, Australia's industrial relations tribunal.

The primary legal issues before the Commission were whether the proposed collective agreement met the statutory requirements for approval under the Fair Work Act 2009. This involved assessing the agreement against the provisions of the Act, including whether it complied with the good faith bargaining requirements, whether it was made in accordance with the minimum standards set by the Act, and whether it would have an adverse effect on the employees' job security or conditions. Additionally, the Commission needed to determine if the agreement contained terms that were outside the scope of the union's authority to bargain.

In rendering its decision, the Commission examined the evidence presented by both parties regarding the bargaining process and the terms of the proposed agreement. The Commission concluded that the agreement did not comply with the good faith bargaining requirements as the employer had not provided sufficient information to the union for meaningful negotiations. Furthermore, the Commission found that certain terms in the agreement were outside the scope of the union's authority. As a result, the Commission did not grant approval of the proposed agreement. The decision was based on the failure of the employer to engage in genuine bargaining and the union's inability to effectively negotiate on behalf of the employees.

The Fair Work Commission ruled that the application for approval of the EDMA Agencies Pty Ltd AMWU On-Site Construction Collective Agreement for NSW 2018-2021 was to be dismissed. The Commission's decision highlights the importance of good faith bargaining and the need for employers to provide adequate information to unions during the negotiation process.

EDMA Agencies Pty Ltd T/A Wexford Welding

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established