DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ferrocut Australia Pty Ltd T/A Ferrocut
(AG2016/5951)

FERROCUT COLLECTIVE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 22 NOVEMBER 2016

Application for approval of the Ferrocut Collective Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Ferrocut Collective Agreement 2016 (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 T/A Ferrocut. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[4] 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.

[5] 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.

[6] 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 November 2016. The nominal expiry date of the Agreement is 31 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Ferrocut Australia Pty Ltd, trading as Ferrocut, applied to the Fair Work Commission for approval of the Ferrocut Collective Agreement 2016. The application involved determining whether the agreement met the requirements of the Fair Work Act 2009, including the need to comply with the provisions on modern awards and the "better off overall test." The parties in dispute were Ferrocut Australia Pty Ltd and the Australian Manufacturing Workers' Union.

The central legal issues before the Commission were whether the collective agreement was in accordance with the statutory requirements under the Fair Work Act and if it satisfied the "better off overall test." The Commission needed to ascertain if the terms of the agreement provided employees with no less benefit than they would have under the applicable modern award and if the agreement was fairly negotiated and in good faith.

In reaching its decision, the Commission examined the terms of the collective agreement and compared them with the relevant modern award, the Metal and Engineering Industries Award 2010. The Commission considered the negotiation process and whether the agreement was made in good faith. The Commission concluded that the Ferrocut Collective Agreement 2016 met the statutory requirements and satisfied the "better off overall test." It found that the agreement provided employees with benefits that were at least equivalent to those under the modern award, and it was made in good faith.

The Fair Work Commission approved the Ferrocut Collective Agreement 2016, confirming its compliance with the Fair Work Act and the "better off overall test." This decision provided clarity for both Ferrocut Australia Pty Ltd and the Australian Manufacturing Workers' Union, ensuring that the agreement would be legally binding and enforceable.

Ferrocut Australia Pty Ltd T/A Ferrocut

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established