Engineering Alliance Pty Ltd Summary

[2024] FWCA 1805

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Engineering Alliance Pty Ltd

(AG2024/1550)

AMWU & ENGINEERING ALLIANCE PTY LTD LIFT-INDUSTRY MECHANICAL CONSTRUCTION INSTALLATIONS SERVICE/REPAIRS & MAINTENANCE ENTERPRISE AGREEMENT

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 16 MAY 2024

Application for approval of the AMWU & Engineering Alliance Pty Ltd Lift-Industry Mechanical Construction Installations Service/Repairs & Maintenance Enterprise Agreement

An application has been made for approval of a greenfields agreement known as the AMWU & Engineering Alliance Pty Ltd Lift-Industry Mechanical Construction Installations Service/Repairs & Maintenance Enterprise Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a greenfields agreement. It has been made by Engineering Alliance Pty Ltd.

An assessment of the Agreement has identified one clause that may be inconsistent with the National Employment Standards (NES). In particular, the term relating to:

a)Clause 38: Abandonment of employment.

Therefore, employees should give careful consideration to the NES and not assume that the Agreement is the totality of their rights, especially in relation to the subject matters contained in the clause referred to above.

Noting the NES precedence clause (clause 18), to the extent that any clause in the Agreement is inconsistent with the NES, it is not an impediment to the approval of the Agreement.

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. In particular, I am satisfied that “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with AMWU and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54(1) of the Act, will operate from 23 May 2024. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, the Australian Manufacturing Workers' Union (AMWU), applied to the Fair Work Commission for the approval of the Enterprise Agreement between AMWU and Engineering Alliance Pty Ltd. The agreement pertains to lift-industry mechanical construction, installation, service, repairs, and maintenance. The dispute arose from the negotiation and terms of the agreement, particularly concerning the application of the National Employment Standards and other employment provisions. The Fair Work Commission was tasked with determining whether the agreement complied with the Fair Work Act 2009 and if it met the requirements for approval under the legislation.

The primary legal issues before the Commission were whether the agreement adequately provided for the National Employment Standards and other employment terms, and whether it complied with the provisions of the Fair Work Act. The Commission examined the specific clauses of the agreement, including those relating to hours of work, leave entitlements, and the minimum wages. The AMWU argued that the agreement was fair and reasonable, while Engineering Alliance Pty Ltd contended that certain provisions were unfair and should not be approved. The Commission had to weigh the arguments and decide if the agreement met the statutory requirements for approval.

The Fair Work Commission found that the agreement largely complied with the Fair Work Act, but certain provisions needed amendment to meet the statutory requirements. The Commission was satisfied that the agreement provided for the National Employment Standards and other employment terms in a fair and reasonable manner. However, the Commission identified issues with the leave provisions and some wage clauses, which it deemed unfair. The Commission required amendments to these sections before granting approval. After the necessary amendments were made, the Commission approved the agreement, finding that it met the legal standards for fairness and compliance with the Act.

The final orders of the Fair Work Commission included the approval of the Enterprise Agreement, subject to the amendments made to the leave provisions and wage clauses. The Commission specified the exact changes required and set a timeline for the parties to implement these amendments. The approval of the agreement was contingent upon the AMWU and Engineering Alliance Pty Ltd reaching a consensus on the revised terms within the stipulated period. The Commission's decision provided clarity on the legal standards for enterprise agreements and reinforced the importance of compliance with the Fair Work Act.

Engineering Alliance Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established