DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kennametal Australia Pty Ltd
(AG2017/3624)

KENNAMETAL AUSTRALIA PTY LTD AND AMWU (EAST BENTLEIGH) ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 19 SEPTEMBER 2017

Application for approval of the Kennametal Australia Pty Ltd and AMWU (East Bentleigh) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Kennametal Australia Pty Ltd and AMWU (East Bentleigh) Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Kennametal Australia 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 Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 September 2017. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Kennametal Australia Pty Ltd applied to the Fair Work Commission for approval of the Kennametal Australia Pty Ltd and AMWU (East Bentleigh) Enterprise Agreement 2017. The Australian Manufacturing Workers' Union (AMWU) was the relevant trade union. The dispute concerned whether the agreement should be approved and registered under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement met the "better off overall test" (BOOT) as outlined in the Fair Work Act 2009. The Commission had to determine if the agreement provided employees with a direct financial benefit or an equivalent non-financial benefit that made them better off overall than they would be under the applicable award. The Commission also needed to consider if the agreement complied with other statutory requirements, such as ensuring the agreement did not undermine the right to protected industrial action.

The Commission found that the agreement met the BOOT as it provided employees with a direct financial benefit in the form of increased wages and improved conditions. The agreement also contained provisions for non-financial benefits such as flexible working arrangements and additional leave provisions, which were deemed to be of significant value to the employees. The Commission concluded that the agreement did not undermine the right to protected industrial action, as it included clear provisions for the exercise of such rights. Consequently, the Commission approved the agreement and ordered its registration under the Fair Work Act 2009.

Kennametal Australia 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