ITW Australia Pty Ltd T/A Reid Construction Systems Summary

[2024] FWCA 4

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ITW Australia Pty Ltd T/A Reid Construction Systems

(AG2023/5188)

REID CONSTRUCTION SYSTEMS AND UNITED WORKERS UNION ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 4 JANUARY 2024

Application for approval of the Reid Construction Systems and United Workers Union Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Reid Construction Systems and United Workers Union Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ITW Australia Pty Ltd T/A Reid Construction Systems. 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.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 43 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The United 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, will operate from 11 January 2024. The nominal expiry date of the Agreement is 30 October 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved ITW Australia Pty Ltd, trading as Reid Construction Systems, and the United Workers Union. The matter pertained to an application for the approval of the Reid Construction Systems and United Workers Union Enterprise Agreement 2023. The primary dispute centred around the conditions of employment and the terms and conditions as outlined in the proposed agreement between the employer and the union representing the employees. The legal issues the court needed to decide involved the fairness and reasonableness of the proposed enterprise agreement, as well as whether the agreement complied with the relevant legislative provisions, including the Fair Work Act 2009.

The Fair Work Commission assessed the application for approval by examining the fairness test, which required the court to consider whether the agreement was free from coercion, discrimination, and undue influence. Furthermore, the court considered whether the agreement provided for appropriate mechanisms for dispute resolution and whether it promoted harmonious, productive, and cooperative workplace relations. The Commission also examined whether the agreement met the "better off overall test," which required that the employees be no worse off and at least some employees be better off financially under the terms of the new agreement compared to the previous one.

In its decision, the Fair Work Commission found that the Reid Construction Systems and United Workers Union Enterprise Agreement 2023 met the requirements of the Fair Work Act 2009. The court concluded that the agreement was fair and reasonable, and it provided appropriate mechanisms for dispute resolution. The Commission was satisfied that the agreement promoted harmonious, productive, and cooperative workplace relations. Furthermore, the court found that the agreement met the "better off overall test," as it provided improved financial outcomes for some employees and did not result in any employee being worse off. Consequently, the Fair Work Commission approved the application for the Reid Construction Systems and United Workers Union Enterprise Agreement 2023.

ITW Australia Pty Ltd T/A Reid Construction Systems

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established