DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ferrocut Australia Pty Ltd
(AG2021/6240)

FERROCUT COLLECTIVE AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 12 AUGUST 2021

Application for approval of the Ferrocut Collective Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Ferrocut Collective Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ferrocut Australia 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. The undertakings are taken to be a term of 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and in accordance with s.54, will operate from 19 August 2021. The nominal expiry date of the Agreement is 1 August 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Ferrocut Australia Pty Ltd was the applicant in a case before the Fair Work Commission, seeking approval of the Ferrocut Collective Agreement 2021. The dispute centred around the terms and conditions of employment for the company's employees and the extent to which the agreement complied with relevant industrial legislation. The Commission was required to determine whether the agreement met the statutory requirements for approval and if it provided for fair and equitable terms for the employees.

The central legal issues involved examining whether the agreement complied with the Fair Work Act 2009, specifically regarding the provisions of section 234, which sets out the criteria for an enterprise agreement. Key considerations included whether the agreement was made in good faith, if it addressed the appropriate bargaining unit, and if it included the necessary minimum terms and conditions as stipulated by the Act. The Commission also needed to assess if the agreement met the "better off overall test" to ensure employees would not be disadvantaged by the agreement compared to their previous terms.

The Commission found that the Ferrocut Collective Agreement 2021 met the necessary criteria for approval. It was concluded that the agreement was made in good faith, covered the appropriate bargaining unit, and provided terms and conditions that were not less favourable than the applicable minimum terms. The agreement was also deemed to pass the "better off overall test," as it did not place employees in a position worse off than they would have been without the agreement. Therefore, the Commission approved the agreement, ensuring it would be legally binding between the parties involved.

No additional orders were required beyond the approval of the agreement. The Commission's decision provided clarity and certainty for both the employer and employees, confirming the agreement's validity and enforceability under the Fair Work Act.

Ferrocut 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