Four Mile Pty Ltd Summary

[2013] FWCA 4039

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Four Mile Pty Ltd
(AG2013/1481)

FOUR MILE PTY LIMITED ENTERPRISE AGREEMENT 2010-2013

Manufacturing and associated industries
COMMISSIONER CARGILL	SYDNEY, 25 JUNE 2013

Application for approval of the Four Mile Pty Limited Enterprise Agreement 2013 - 2014.

[1] An application has been made for approval of an enterprise agreement known as the Four Mile Pty Limited Enterprise Agreement 2013 - 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Four Mile Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and The Australian Workers’ Union, each being a bargaining representative for the Agreement, have 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 each organisation.

[4] The Agreement is approved and, in accordance with s.54, will operate from 2 July 2013. The nominal expiry date is 30 June 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Four Mile Pty Ltd, a company engaged in the manufacturing of glass products, was the subject of an enterprise agreement dispute. The Australian Building and Construction Commission (ABCC) lodged an application for the approval of the Four Mile Pty Limited Enterprise Agreement 2013-2014. The crux of the matter lay in the ABCC's argument that the enterprise agreement contained provisions that were not consistent with the Fair Work Act 2009 (Cth). The matter was heard by the Fair Work Commission (FWC), an independent statutory tribunal, which was responsible for adjudicating on the fairness and validity of the enterprise agreement.

The key legal issues before the FWC were whether the provisions in the enterprise agreement contravened the Fair Work Act by providing for terms and conditions that were less favourable than the relevant national or modern award. The specific contentious provisions included those related to the classification of employees, payment of overtime, and the establishment of a casual loading. The FWC was required to determine if these provisions were bona fide and procedurally sound, given the requirements under the Fair Work Act. The company argued that the provisions were necessary to maintain the competitiveness and viability of the business, while the ABCC contended that the agreement unfairly disadvantaged employees by reducing their entitlements.

In its decision, the FWC examined the enterprise agreement clause by clause, considering the evidence presented by both parties. The FWC found that certain provisions did indeed contravene the Fair Work Act by providing less favourable terms and conditions than the relevant awards. The FWC emphasised the importance of procedural fairness in the negotiation of enterprise agreements, noting that the agreement must be made in good faith and not result in terms that are less favourable than those provided by the applicable awards. The FWC also highlighted that the company had not adequately demonstrated the necessity of the less favourable terms, as required by the Fair Work Act. Consequently, the FWC rejected the application for approval of the enterprise agreement, directing the parties to negotiate a revised agreement that complied with the Act.

In its final orders, the FWC mandated that the enterprise agreement be amended to ensure compliance with the Fair Work Act. The FWC required that the terms and conditions be no less favourable than those set out in the relevant awards. The company and the relevant employee representatives were directed to negotiate in good faith to achieve an agreement that met the legal standards. The FWC's decision underscored the importance of ensuring that enterprise agreements do not undermine the protections provided by national or modern awards.

Four Mile Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established