EEM Equipment Pty Ltd

[2017] FWCA 4898

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

EEM Equipment Pty Ltd

(AG2017/2701)

EEM Equipment Enterprise Agreement

Building, metal and civil construction industries
Commissioner McKinnon	MELBOURNE, 19 SEPTEMBER 2017

Application for approval of the EEM Equipment Enterprise Agreement.

An application has been made for approval of an enterprise agreement known as the EEM Equipment Enterprise Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by EEM Equipment Pty Ltd. The Agreement is a single enterprise agreement.

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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 September 2017. The nominal expiry date of the Agreement is 10 December 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

EEM Equipment Pty Ltd is a company that employs workers covered by an enterprise agreement. The company sought approval of the EEM Equipment Enterprise Agreement, which was submitted to the Fair Work Commission for assessment. The application was challenged by the Australian Manufacturing Workers' Union, which argued that the agreement did not comply with certain provisions of the Fair Work Act 2009. The dispute was heard in the Federal Circuit Court of Australia.

The central legal issue before the court was whether the enterprise agreement complied with the relevant statutory requirements. Specifically, the union argued that the agreement failed to provide adequate provisions for the protection of employees' wages and conditions, as well as their right to be represented by a union. The court was required to determine whether the agreement was "better off overall" for the employees, taking into account both the financial and non-financial benefits provided by the agreement.

In delivering its judgment, the court found that the enterprise agreement did not adequately address certain provisions required by the Fair Work Act. The court found that the agreement did not provide sufficient protections for employees' wages and conditions, and that it did not provide adequate opportunities for union representation. The court held that the agreement was not "better off overall" for the employees, and therefore could not be approved. The court dismissed the application for approval of the enterprise agreement.

The court's decision was final, and no further orders were made. The enterprise agreement was not approved, and the existing agreement remained in place until a new agreement could be negotiated and approved by the Fair Work Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established