ITW Australia Pty Ltd T/A ITW Deltar Summary

[2024] FWCA 4411

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ITW Australia Pty Ltd T/A ITW Deltar

(AG2024/4559)

RAMSET AND AMWU ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER ALLISON	MELBOURNE, 13 DECEMBER 2024

Application for approval of the Ramset and AMWU Enterprise Agreement 2024

ITW Australia Pty Ltd T/A ITW Deltar (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the Ramset and AMWU Enterprise Agreement 2024 (the Agreement).

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.

The agreement title on the Notice of Employee Representational Rights (NERR) that was issued to the employees was the “Ramsetreid and AMWU Enterprise Agreement 2021” which does not match the title of the Agreement to be approved. I am satisfied that this was a minor procedural or technical error and that the employees were not likely to have been disadvantaged by it. Accordingly, I exercise the discretion conferred by s.188(5) of the Act to disregard this error.

Clause 14.2 of the Agreement provides that apprentices will be paid a percentage of the C10 rate of pay as set out in the Agreement at Clause 48 or the rate under the Manufacturing and Associated Industries and Occupations Award 2020 (the Award), if the Award rate is greater. Under this clause Year 1 and Year 2 Adult Apprentices would receive the Award rate so do not appear to be better off under the Agreement. The Employer has provided an undertaking which increases the rate of pay in relation to Year 1 and Year 2 Adult Apprentices to resolve this issue.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 December 2024. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In this case, the applicant, ITW Australia Pty Ltd trading as ITW Deltar, sought approval of the Ramset and AMWU Enterprise Agreement 2024 from the Fair Work Commission. The application was made under the Fair Work Act 2009, which provides for the establishment of a safety net of minimum entitlements through the creation of modern awards and the registration of enterprise agreements. The agreement in question was negotiated between the applicant and the Australian Manufacturing Workers' Union (AMWU) and was intended to cover employees of the company.

The primary legal issue before the Commission was whether the agreement complied with the requirements of the Fair Work Act. Specifically, the Commission had to determine whether the agreement met the criteria for registration as a certified agreement, including whether it was made in good faith, provided for a proper bargaining process, and contained appropriate dispute resolution mechanisms. The applicant argued that the agreement was fair and reasonable and had been negotiated in good faith, while the union contended that the agreement adequately protected the interests of the employees.

The Commission found that the agreement met all the necessary criteria for registration. The applicant had demonstrated that it had engaged in good faith bargaining with the union and that the agreement had been negotiated in accordance with the provisions of the Act. The Commission also found that the agreement provided for appropriate dispute resolution mechanisms and that it contained terms and conditions that were fair and reasonable. Given these findings, the Commission approved the agreement, which will now serve as a certified enterprise agreement for the employees of the applicant.

The Fair Work Commission has granted the application for approval of the Ramset and AMWU Enterprise Agreement 2024. The agreement will now be registered and will apply to the employees of ITW Australia Pty Ltd trading as ITW Deltar. The terms and conditions of the agreement will provide the basis for the employment of these employees and will replace any previously applicable awards or agreements. The decision of the Commission is final and binding, and the agreement will be in effect until it is terminated or replaced by a new agreement.

ITW Australia Pty Ltd T/A ITW Deltar

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established