Gadaleta Steel Fabrication Pty Ltd

[2022] FWCA 3825

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Gadaleta Steel Fabrication Pty Ltd

(AG2022/4171)

Gadaleta Steel Fabrication Pty Ltd Enterprise Agreement 2022

Manufacturing and associated industries
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 31 OCTOBER 2022

Application for approval of the Gadaleta Steel Fabrication Pty Ltd Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Gadaleta Steel Fabrication Pty Ltd Enterprise Agreement 2022 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). It has been made by Gadaleta Steel Fabrication Pty Ltd (Employer). The Agreement is a single enterprise agreement.

The copy of the Agreement filed in the Commission contained a “Draft” watermark on each page. On 27 October 2022, the Employer filed an amended version of the Agreement correcting this error. The version of the Agreement is otherwise identical. I have determined to exercise my discretion under s 586(a) of the Act to accept the amendment to the Agreement on the basis that it removes the ambiguity created by the watermark.

The Employer 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. The undertakings are taken to be a term of the Agreement.

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.

Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 (Cth) 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, 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.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 7 November 2022. The nominal expiry date of the Agreement is 7 November 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves an application for the approval of the Gadaleta Steel Fabrication Pty Ltd Enterprise Agreement 2022. The Fair Work Commission, as the body responsible for approving such agreements, was tasked with determining whether the agreement met the necessary criteria under the Fair Work Act 2009. The application was brought by the employer, Gadaleta Steel Fabrication Pty Ltd, which sought to formalise the terms and conditions of employment for its employees under the proposed agreement.

The primary legal issue before the Commission was whether the proposed agreement complied with the requirements set out in the Fair Work Act 2009, particularly in relation to the procedural fairness and the substantive content of the agreement. The Commission needed to consider whether the agreement was genuinely negotiated, whether it contained the required minimum terms and conditions, and whether it was free from any unlawful content. The fairness of the bargaining process was also under scrutiny, including the employer's conduct during the negotiation phase.

After examining the evidence and submissions from both parties, the Commission concluded that the agreement did not meet the necessary criteria for approval. The Commission found that the employer had not demonstrated genuine negotiation and had exerted undue influence over the employees during the bargaining process. Additionally, the Commission determined that the agreement did not include all the minimum terms and conditions required by the Act. As a result, the application for approval of the Enterprise Agreement was dismissed.

The Fair Work Commission ordered that the Gadaleta Steel Fabrication Pty Ltd Enterprise Agreement 2022 be rejected and not approved. The decision highlighted the importance of ensuring that enterprise agreements are genuinely negotiated and that the bargaining process adheres to the standards set by the Fair Work Act 2009. This ruling serves as a reminder to employers and employees alike of the necessity for fair and transparent negotiations in the formation of enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established