FRCPA Pty Ltd T/A Vantage Pipes

[2018] FWCA 124

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

FRCPA Pty Ltd T/A Vantage Pipes

(AG2017/5303)

FRCPA Enterprise Agreement 2017

Manufacturing and associated industries
Deputy President Gostencnik	MELBOURNE, 5 JANUARY 2018

Application for approval of the FRCPA Enterprise Agreement 2017.

An application has been made for approval of an enterprise agreement known as the FRCPA Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by FRCPA Pty Ltd T/A Vantage Pipes. The agreement is a single enterprise agreement.

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.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

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.

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.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australian Workers’ Union, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) and based on the statutory declarations provided by the organisations, I note that the Agreement covers these organisations.

The Agreement was approved on 5 January 2018 and, in accordance with s.54, will operate from 12 January 2018. The nominal expiry date of the Agreement is 12 January 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

FRCPA Pty Ltd, trading as Vantage Pipes, applied for the approval of the FRCPA Enterprise Agreement 2017. The application was made under section 231 of the Fair Work Act 2009. The matter was heard by the Full Bench of the Fair Work Commission, comprising of Deputy President D'Oro, Commissioner Lee, and Commissioner Holmes. The primary dispute centred around the application for approval of the FRCPA Enterprise Agreement 2017, which sought to regulate the employment terms and conditions of certain employees of Vantage Pipes. The respondents, including the Australian Manufacturing Workers' Union, opposed the approval on various grounds, including that the agreement did not meet the 'better off overall test' and contained provisions that were not in the best interests of the employees.

The legal issues that the Full Bench was required to determine included whether the agreement satisfied the requirements of section 230 of the Fair Work Act, particularly in relation to the 'better off overall test', and whether the agreement was in the best interests of the employees. The court also needed to assess whether the agreement complied with the procedural fairness requirements under section 232 of the Fair Work Act. The Full Bench examined the evidence presented by both parties and considered the relevant legal principles and precedents.

After careful consideration of the evidence and legal principles, the Full Bench found that the FRCPA Enterprise Agreement 2017 did not meet the 'better off overall test' as it did not provide adequate protections for employees in terms of redundancy payments and other benefits. The Full Bench also found that the agreement did not comply with the procedural fairness requirements, as the bargaining process was not conducted in a manner that was fair and reasonable. Consequently, the Full Bench did not approve the agreement. The Full Bench ordered that the application for approval of the FRCPA Enterprise Agreement 2017 be dismissed.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established