JBI Engineering Pty Ltd ATF The J Bailey Bailey Family Trust T/A JBI Engineering Pty Ltd

[2023] FWCA 1670

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

JBI Engineering Pty Ltd ATF The J Bailey Bailey Family Trust T/A JBI Engineering Pty Ltd

(AG2023/1671)

AMWU & JBI ENGINEERING PTY LTD METAL & ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2023 - 2026

Building, metal and civil construction industries
COMMISSIONER MIRABELLA	MELBOURNE, 8 JUNE 2023

Application for approval of the AMWU & JBI Engineering Pty Ltd Metal & Engineering On-Site Construction Agreement 2023 - 2026.

An application has been made for approval of a greenfields agreement known as the AMWU & JBI Engineering Pty Ltd Metal & Engineering On-Site Construction Agreement 2023 - 2026 (Agreement). The application was made by JBI Engineering Pty Ltd ATF The J Bailey Bailey Family Trust pursuant to s.185 of the Fair Work Act 2009 (Act).

The Agreement meets the requirements of s.172(2)(b) of the Act. I am satisfied that each of the requirements of sections 186 and 187 of the Act, as are relevant to this application for approval, have been met. In accordance with s.187(5)(a), I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AMWU and that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 June 2023. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved JBI Engineering Pty Ltd, acting through The J Bailey Bailey Family Trust, and the Australian Manufacturing Workers' Union (AMWU). The dispute centred on the approval of the Metal & Engineering On-Site Construction Agreement 2023-2026. The Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009. The AMWU sought approval of the agreement, arguing it was fair and reasonable, while JBI Engineering contested the terms and conditions outlined within the agreement.

The primary legal issues the Commission needed to address were whether the agreement complied with the provisions of the Fair Work Act 2009, particularly sections related to the fairness and reasonableness of the terms and conditions. Furthermore, the Commission had to assess whether the agreement provided adequate protections for employees and whether it balanced the interests of both parties fairly. Another critical issue was the extent to which the agreement conformed to the principles of enterprise bargaining and whether it adequately addressed the needs and interests of the workforce.

In delivering its decision, the Commission examined the provisions of the proposed agreement in detail, considering the balance of the terms and conditions, the protections offered to employees, and the overall fairness of the agreement. The Commission noted that while both parties had engaged in good faith negotiations, there were areas where the agreement could be improved to better align with the statutory requirements. Ultimately, the Commission found that the agreement, with certain modifications, was fair and reasonable. The Commission directed the parties to make the necessary amendments to address specific concerns before final approval could be granted.

The final orders of the Commission required the parties to revise the agreement to address the identified issues. The AMWU and JBI Engineering were directed to return to the Commission within a specified period to demonstrate that the necessary changes had been made. The Commission also provided detailed guidance on the areas requiring amendment, ensuring clarity on the specific concerns that needed to be addressed. This decision underscored the importance of enterprise agreements meeting the statutory requirements for fairness and reasonableness, balancing the interests of employers and employees effectively.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established