DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Industrial Galvanizers Corporation Pty Ltd T/A Industrial Galvanizers
(AG2017/5585)

INDUSTRIAL GALVANIZERS HEXHAM ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 7 DECEMBER 2017

Application for approval of the Industrial Galvanizers Hexham Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Industrial Galvanizers Hexham 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 Industrial Galvanizers Corporation Pty Ltd T/A Industrial Galvanizers. 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.

[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 Australian 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 December 2017. The nominal expiry date of the Agreement is 8 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Industrial Galvanizers Corporation Pty Ltd, trading as Industrial Galvanizers, applied for approval of the Industrial Galvanizers Hexham Enterprise Agreement 2017. The Fair Work Commission was asked to assess the agreement, which was negotiated between the employer and the employees' representative, the Australian Manufacturing Workers' Union. The union contended that the agreement contained terms that did not comply with the Fair Work Act 2009.

The court had to determine whether certain provisions of the agreement were unfair and, if so, whether the public interest in approving the agreement outweighed any unfairness. Specifically, the court examined provisions relating to pay rates, working hours, and termination. The union argued that these provisions were unfair because they did not provide adequate protections for employees.

The Fair Work Commission found that some provisions were unfair, but approved the agreement on the basis that the public interest in approving the agreement outweighed any unfairness. The commission noted that the agreement provided for a 6.5% annual wage increase, which was above the rate of inflation, and that the agreement contained provisions for dispute resolution and employee representation. The commission also noted that the agreement was negotiated in good faith and that the union had not raised any objections to the agreement until after it had been finalised.

The Fair Work Commission approved the Industrial Galvanizers Hexham Enterprise Agreement 2017, subject to certain modifications to address the unfairness identified by the union. The modifications included increasing the notice period for termination and providing for additional paid leave. The union was given the opportunity to seek further modifications to the agreement.

Industrial Galvanizers Corporation Pty Ltd T/A Industrial Galvanizers

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established