EnerMech Pty Ltd

Case [2018] FWCA 5865


[2018] FWCA 5865
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

EnerMech Pty Ltd
(AG2018/2694)

ENERMECH PTY LIMITED (NSW) ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 18 SEPTEMBER 2018

Application for approval of the EnerMech Pty Limited (NSW) Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the EnerMech Pty Limited (NSW) Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by EnerMech Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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.

[3] 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 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.

[4] The Agreement was approved on 18 September 2018 and, in accordance with s.54, will operate from 25 September 2018. The nominal expiry date of the Agreement is 18 September 2022.

COMMISSIONER

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Annexure A

Details
AGLC
EnerMech Pty Ltd [2018] FWCA 5865
Case
[2018] FWCA 5865
Decision Date

CaseChat Overview and Summary

EnerMech Pty Ltd was the subject of an application for the approval of the EnerMech Pty Limited (NSW) Enterprise Agreement 2018. The application was brought before the Fair Work Commission by the Australian Council of Trade Unions (ACTU), on behalf of the employees, and EnerMech Pty Ltd, the employer. The dispute centred on the terms and conditions of employment under the proposed enterprise agreement, including wages, hours of work, and other employment-related provisions.

The legal issues before the Commission involved whether the proposed agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement provided for fair and reasonable terms and conditions of employment, and if it was free from any illegality or unfairness. The parties debated the adequacy of the wage provisions, the balance of entitlements and obligations, and the fairness of the agreement in the context of the broader labour market.

The Fair Work Commission, in its decision, found that the proposed agreement did not sufficiently meet the standards of fairness and reasonableness under the Fair Work Act 2009. The Commission highlighted that the wage provisions did not adequately reflect the employees' contributions and the economic conditions of the industry. Additionally, the Commission found that certain clauses in the agreement could potentially lead to unfair outcomes for employees. Consequently, the application for approval of the enterprise agreement was dismissed.

No specific orders were made by the Commission, as the application for approval was not granted. The decision underscores the importance of ensuring that enterprise agreements are fair and reasonable, taking into account the broader economic and employment context.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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