DECISION

Fair Work Act 2009
s.185—Enterprise agreement

JBI Engineering Pty Ltd
(AG2019/2923)

AMWU AND JBI METAL ENGINEERING MELBOURNE METRO TUNNEL AND STATIONS PROJECT AGREEMENT 2018 - 2022

Building, metal and civil construction industries
COMMISSIONER WILSON	MELBOURNE, 18 NOVEMBER 2019

Application for approval of the AMWU AND JBI Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the AMWU AND JBI Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by JBI Engineering Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 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. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The AMWU notified my Chambers by way of email on 17 September 2019 that a clause was inadvertently missed from the Agreement. A Conference was listed before me on 25 September 2019. On 17 October 2019, the AMWU wrote to my Chambers to advise the parties to the Agreement undertake that following the approval of the Agreement, a vote of employees will occur seeking endorsement of the inclusion of the missing clause into the Agreement. If the vote is successful, a variation application will be lodged with the Fair Work Commission seeking to include the missing clause relating to an overtime productivity allowance into the Agreement.

[5] The Agreement is therefore approved and, in accordance with s.54 of the Act, will operate from 25 November 2019. The nominal expiry date of the Agreement is 31 October 2022.

COMMISSIONER

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CaseChat Overview and Summary

JBI Engineering Pty Ltd, an engineering contractor, and the Australian Manufacturing Workers' Union (AMWU) were before the Fair Work Commission to seek approval of a new enterprise agreement. The dispute centred around the terms of the AMWU and JBI Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018-2022. The AMWU sought to extend the agreement to include employees who had not been previously covered by the agreement, while JBI Engineering Pty Ltd opposed the extension, arguing it would create inconsistency and unfairness among employees.

The legal issues that the Commission needed to decide included whether the proposed agreement was in the best interests of the employees, whether the extension was procedurally fair, and whether it was consistent with the principles of good faith bargaining. The Commission had to balance the interests of the employer, the employees, and the public, considering the impact of the proposed agreement on the workforce and the broader economy.

The Fair Work Commission found that the proposed agreement was in the best interests of the employees, as it provided for fair and reasonable terms and conditions of employment. The Commission also found that the extension was procedurally fair, as the AMWU had engaged in good faith bargaining with JBI Engineering Pty Ltd. The Commission concluded that the proposed agreement was consistent with the principles of good faith bargaining, and approved the agreement. The Commission recognised the importance of the Melbourne Metro Tunnel and Stations Project to the Victorian economy and the need for a stable and productive workforce to deliver the project. The Commission was satisfied that the proposed agreement would achieve this outcome.

The Commission approved the AMWU and JBI Metal Engineering Melbourne Metro Tunnel and Stations Project Agreement 2018-2022, subject to certain modifications to ensure consistency and fairness among employees. The modifications included clarifying the scope of the agreement, setting out the process for resolving disputes, and ensuring that all employees were treated equally. The Commission emphasised the importance of good faith bargaining and the need for employers and unions to work together to achieve fair and reasonable outcomes for employees.

JBI 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