DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Gemco Rail Pty Ltd
(AG2017/1217)

GEMCO RAIL PTY LTD WA COLLECTIVE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 12 MAY 2017

Application for approval of the Gemco Rail Pty Ltd WA Collective Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Gemco Rail Pty Ltd WA Collective Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Gemco Rail Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] 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.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[6] The Agreement was approved on 12 May 2017 and, in accordance with s.54, will operate from 19 May 2017. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Gemco Rail Pty Ltd recently faced a legal challenge regarding the approval of the Gemco Rail Pty Ltd WA Collective Agreement 2016. This case involved Gemco Rail, a company operating in the rail industry, and the Fair Work Commission, which was petitioned to approve the proposed collective agreement. The agreement in question was negotiated between Gemco Rail and a union representing its employees, and it aimed to set out the terms and conditions of employment for the workers.

The primary legal issue before the Fair Work Commission was whether the proposed collective agreement complied with the relevant provisions of the Fair Work Act 2009, specifically in relation to the process of its negotiation and the content of its provisions. The Commission had to consider whether the agreement had been fairly and properly negotiated and whether it adhered to the statutory requirements set out in the Act. Additionally, the Commission needed to determine if the agreement was in the best interests of the employees it was intended to cover, particularly in terms of its impact on their wages and conditions of employment.

The Fair Work Commission, after reviewing the evidence and submissions from both parties, determined that the collective agreement was fairly and properly negotiated and met the statutory requirements of the Fair Work Act 2009. The Commission was satisfied that the process followed in negotiating the agreement was fair and that the content of the agreement was in the best interests of the employees. The Commission approved the Gemco Rail Pty Ltd WA Collective Agreement 2016, thereby resolving the legal dispute in favour of Gemco Rail. The Commission's decision affirmed the validity of the collective bargaining process and the terms of the agreement, providing clarity and legal certainty for both the company and its employees.

Gemco Rail 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