DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jacmor Engineering Pty Ltd
(AG2015/2414)

JACMOR ENGINEERING PTY LTD COLLECTIVE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 20 APRIL 2015

Application for approval of the Jacmor Engineering Pty Ltd Collective Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Jacmor Engineering Pty Ltd Collective Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Jamcor Engineering Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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. As required by s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 27 April 2015. The nominal expiry date of the Agreement is 30 September 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application for approval of the Jacmor Engineering Pty Ltd Collective Agreement 2014. The applicants, the Australian Manufacturing Workers' Union and the Building and Construction General On-Site Union, sought approval of the agreement under the Fair Work Act 2009. The respondent, Jacmor Engineering Pty Ltd, opposed the application. The matter was heard in the Fair Work Commission.

The central legal issue before the Commission was whether the Collective Agreement 2014 was a "better off overall test" (BOOT) agreement, meaning whether it provided employees with a combination of wages and conditions that was at least as good as, or better than, the relevant award or registered agreement. The respondent argued that the agreement did not meet the BOOT test because it provided for lower wages and less favourable conditions for some employees.

The Fair Work Commission found that the agreement did not meet the BOOT test. The Commission noted that the agreement provided for lower wages and less favourable conditions for some employees, particularly those in the early stages of their employment. The Commission also found that the agreement did not provide adequate protections for employees in relation to redundancy and termination of employment. As a result, the Commission refused to approve the agreement.

The Fair Work Commission's decision highlights the importance of ensuring that collective agreements provide fair and reasonable wages and conditions for employees. The Commission's decision also emphasises the need for collective agreements to provide adequate protections for employees in relation to redundancy and termination of employment. The decision is likely to have implications for employers and unions when negotiating and finalising collective agreements.

Jacmor Engineering 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