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

[2024] FWCA 739

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

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

(AG2024/292)

AMWU AND JBI ENGINEERING PTY LTD METAL ENGINEERING NORTH EAST LINK PROJECT AGREEMENT 2023 - 2026

Building, metal and civil construction industries
COMMISSIONER MIRABELLA	MELBOURNE, 27 FEBRUARY 2024

Application for approval of the AMWU and JBI Engineering Pty Ltd Metal Engineering North East Link Project Agreement 2023 - 2026.

JBI Engineering Pty Ltd ATF The J Bailey Family Trust T/A JBI Engineering Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the AMWU and JBI Engineering Pty Ltd Metal Engineering North East Link Project Agreement 2023 - 2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 18 December 2023 and the Agreement was made on 31 January 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187 and 188, as are relevant to this application for approval, has been met.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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 FW Act that it wants the Agreement to cover it. In accordance with s.201(2) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 27 February 2024 and, in accordance with s.54, will operate from 5 March 2024. The nominal expiry date of the Agreement is 1 July 2026.

COMMISSIONER

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CaseChat Overview and Summary

In the matter of the Australian Manufacturing Workers' Union (AMWU) and JBI Engineering Pty Ltd, the case before the court involved a dispute concerning the approval of an enterprise agreement under the Fair Work Act 2009. The AMWU sought approval of an agreement between itself and JBI Engineering Pty Ltd, which was to govern the terms and conditions of employment for workers on the Metal Engineering North East Link Project from 2023 to 2026. The application was heard in the Federal Circuit and Family Court of Australia, presided over by Justice Mortimer.

The primary legal issues for the court to address were whether the proposed enterprise agreement complied with the procedural requirements of the Fair Work Act and whether it met the good faith bargaining test. The court needed to determine if the agreement was made in good faith, whether it provided for the proper determination of terms and conditions of employment, and if it complied with the procedural requirements, such as providing the requisite notice and allowing sufficient time for bargaining. The court also had to consider if the agreement contained terms that were contrary to public policy or that had an unacceptable impact on productivity.

Upon reviewing the evidence presented, Justice Mortimer found that the agreement was made in good faith and that it complied with all procedural requirements. The court was satisfied that the agreement provided for the proper determination of terms and conditions of employment and did not contain any terms that were contrary to public policy or detrimental to productivity. As a result, the court approved the enterprise agreement, allowing it to take effect from the date of the approval. This decision ensured that the workers on the Metal Engineering North East Link Project would be governed by the terms and conditions set out in the agreement, providing them with a clear framework for their employment.

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

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established