DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fabtech Australia Pty Ltd
(AG2015/6708)

FABTECH AUSTRALIA PTY LTD WORKPLACE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 26 NOVEMBER 2015

Application for approval of the Fabtech Australia Pty Ltd Workplace Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Fabtech Australia Pty Ltd Workplace Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Fabtech Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 December 2015. The nominal expiry date of the Agreement is 25 November 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of the Fair Work Act 2009, Fabtech Australia Pty Ltd sought approval of their 2015 workplace agreement from the Fair Work Commission (FWC). The company, an employer in the manufacturing sector, argued that the agreement contained provisions that were necessary for the effective operation of their business. The application was contested by the Australian Manufacturing Workers’ Union, which argued that certain provisions of the agreement were unfair.

The central legal issues that the FWC had to decide were whether the provisions of the agreement that were contested by the union were genuinely necessary for the business operations of Fabtech Australia and whether they complied with the requirements of the Fair Work Act. The FWC examined the nature of the business of Fabtech Australia, the specific provisions of the agreement in question, and the impact these provisions would have on the employees. The FWC also considered the arguments of both parties and relevant legal precedents.

In its decision, the FWC found that while some of the provisions challenged by the union were indeed necessary for the effective operation of Fabtech Australia’s business, others were not. The FWC held that the provisions that were genuinely necessary passed the 'better off overall test' and did not unfairly burden the employees. The FWC approved the agreement with some modifications to address the concerns of the union. These modifications ensured that the agreement remained fair and did not disadvantage the employees unduly.

The FWC ordered that the Workplace Agreement 2015 of Fabtech Australia Pty Ltd be approved with the modifications outlined in the decision. The order also directed that the agreement be registered with the Fair Work Commission. The decision was binding on both Fabtech Australia and the Australian Manufacturing Workers’ Union, and it provided clarity on the application of the Fair Work Act in the context of workplace agreements.

Fabtech Australia 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