DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Exalt Labour Hire Pty Ltd
(AG2019/3415)

EXALT LABOUR HIRE AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2017 - 2020

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 1 OCTOBER 2019

Application for approval of the EXALT LABOUR HIRE and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020.

[1] An application has been made for approval of a greenfields agreement known as the EXALT LABOUR HIRE and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020 (the Agreement). The application was made by Exalt Labour Hire Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the “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.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 October 2019. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the court was an application by Exalt Labour Hire Pty Ltd for the approval of the EXALT LABOUR HIRE and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020. The Australian Manufacturing Workers' Union (AMWU) contested the application, asserting that certain provisions of the agreement were not in accordance with the relevant legislation. The court was tasked with determining whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The primary legal issue before the court was whether the proposed agreement complied with the relevant provisions of the Fair Work Act, particularly in relation to the inclusion of certain clauses that were considered to be outside the scope of the parties' bargaining power. The court needed to assess whether these clauses were consistent with the overarching objectives of the Act, which is to promote harmonious, productive and equitable workplace relations. The AMWU argued that specific clauses in the agreement were beyond the scope of the parties' bargaining power and therefore not eligible for approval.

The court examined the specific clauses in question and found that they did not align with the requirements of the Fair Work Act. The court determined that the clauses in question exceeded the scope of the parties' bargaining power and thus were not eligible for approval. Given this finding, the court dismissed the application for approval of the agreement. The court's decision was grounded in its interpretation of the statutory framework and the obligations it imposes on labour hire companies and unions in the negotiation and approval of enterprise agreements.

The court ordered that the application for approval of the EXALT LABOUR HIRE and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020 be dismissed. The decision underscored the importance of compliance with the Fair Work Act in the negotiation and approval of enterprise agreements.

Exalt Labour Hire 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