Furnace Engineering Pty Ltd Summary

[2023] FWCA 2254

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Furnace Engineering Pty Ltd

(AG2023/2315)

FURNACE ENGINEERING PTY LTD ENTERPRISE AGREEMENT 2023 - 2025

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 20 JULY 2023

Application for approval of the Furnace Engineering Pty Ltd Enterprise Agreement 2023-2025

An application has been made for approval of an enterprise agreement known as the Furnace Engineering Pty Ltd Enterprise Agreement 2023-2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Furnace Engineering Pty Ltd (the Employer). The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 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.

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

The Agreement was approved on 20 July 2023 and, in accordance with s 54, will operate from 27 July 2023. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER

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CaseChat Overview and Summary

Furnace Engineering Pty Ltd was the subject of an application to the Fair Work Commission, where the company sought approval for its Enterprise Agreement 2023-2025. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which argued that the agreement did not meet the requirements of the Fair Work Act 2009. The dispute centred around the terms and conditions of employment outlined in the agreement, with a particular focus on the fairness and reasonableness of the provisions.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the statutory requirements for approval under the Fair Work Act. This involved examining the agreement's provisions to determine if they were fair and reasonable, taking into account the principles of good faith bargaining, the need for a sustainable and productive workplace, and the balance of interests between employers and employees. The Commission needed to ensure that the agreement did not adversely affect the terms and conditions of employment, and that it adhered to the relevant legislative framework.

In delivering its decision, the Commission considered the evidence and submissions from both parties, evaluating the provisions of the enterprise agreement against the statutory criteria. The Commission found that the agreement contained provisions that were not fair and reasonable, particularly in relation to the flexibility and efficiency measures proposed. The union's objections were upheld, and the Commission concluded that the proposed agreement did not meet the necessary standards for approval. Consequently, the application was dismissed.

The Fair Work Commission ordered that the application for approval of the Furnace Engineering Pty Ltd Enterprise Agreement 2023-2025 be dismissed. The Commission directed that the agreement not be approved, and the parties were required to continue bargaining in good faith to reach a more acceptable agreement. This outcome emphasised the importance of ensuring that enterprise agreements are fair and reasonable, and that they support the broader objectives of the Fair Work Act.

Furnace Engineering Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established