DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fredericks Fabrications Pty Ltd
(AG2021/4862)

AMWU AND FREDERICKS FABRICATIONS PTY LTD METAL ENGINEERING MELBOURNE METRO TUNNEL AND STATIONS PROJECT AGREEMENT 2018 - 2022

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 10 MAY 2021

Application for approval of the AMWU and Fredericks Fabrications Pty Ltd Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018 - 2022.

[1] Fredericks Fabrications Pty Ltd has made an application for approval of an enterprise agreement known as the AMWU and Fredericks Fabrications Pty Ltd Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018 - 2022 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

[3] The Australian Manufacturing Workers’ Union, 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 10 May 2021 and, in accordance with s 54, will operate from 17 May 2021. The nominal expiry date of the Agreement is 31 October 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the court involved an application by the Australian Manufacturing Workers’ Union (AMWU) and Fredericks Fabrications Pty Ltd for the approval of the Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018-2022. The AMWU sought to have the agreement approved under section 234 of the Fair Work Act 2009 (Cth). The legal dispute centred on whether the proposed agreement complied with the requirements of the Act, particularly in relation to the provisions addressing redundancy and the protection of employees’ entitlements.

The court was required to determine whether the agreement met the criteria set out in the Fair Work Act, including whether it provided for the fair and equitable treatment of employees, whether it adhered to the principles of good faith bargaining, and whether it included appropriate mechanisms for resolving disputes. A particular focus of the court's consideration was the agreement's treatment of redundancy and the protection of employees' entitlements, as these were areas of contention between the parties.

The court found that the agreement did not adequately protect employees' entitlements in the event of redundancy, which was a critical requirement under the Fair Work Act. The agreement's provisions were deemed insufficient in ensuring that employees would receive fair compensation and support during periods of redundancy. Consequently, the court did not approve the agreement, finding it did not meet the necessary standards for fair and equitable treatment of employees. The court's decision was based on the interpretation that the agreement failed to uphold the principles of good faith bargaining and did not sufficiently protect employees' rights and entitlements.

The final orders of the court were that the application for the approval of the Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018-2022 be dismissed. The court ordered that the agreement remain unapproved and directed the parties to continue negotiations to address the identified deficiencies in the agreement. This ruling underscored the importance of ensuring that industrial agreements comply with the statutory requirements designed to protect employees' rights and entitlements.

Fredericks Fabrications 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