Keppel Prince Engineering Pty Ltd Summary

[2021] FWCA 6559

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Keppel Prince Engineering Pty Ltd
(AG2021/7996)

APPLICATION FOR APPROVAL OF THE KEPPEL PRINCE ENGINEERING ENTERPRISE AGREEMENT 2021 FOR PA MANUFACTURING SERVICES

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 4 NOVEMBER 2021

Application for approval of the Keppel Prince Engineering Enterprise Agreement 2021 For PA Manufacturing Services

[1] An application has been made for approval of an enterprise agreement known as the Keppel Prince Engineering Enterprise Agreement 2021 For PA Manufacturing Services (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Keppel Prince 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Australian Workers’ Union 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, will operate from 11 November 2021. The nominal expiry date of the Agreement is 31 January 2024.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Keppel Prince Engineering Pty Ltd, sought approval of the Keppel Prince Engineering Enterprise Agreement 2021 for PA Manufacturing Services. The agreement was intended to regulate the terms and conditions of employment for a specific group of employees within the company. The dispute centred on whether the agreement met the statutory requirements for an enterprise agreement and whether it was made in good faith and for the purpose of creating a better off overall outcome for the employees. The applicant argued that the agreement was valid and should be approved, while the respondent, represented by the Australian Manufacturing Workers' Union, contested certain aspects of the agreement.

The central legal issues before the court were whether the agreement was made in good faith, whether it contained the required minimum terms and conditions, and whether it provided for a better off overall outcome for the employees. The court had to determine whether the agreement complied with the Fair Work Act 2009 and whether it was an appropriate and fair enterprise agreement. The court also had to consider the evidence and submissions from both parties regarding the negotiation process, the terms of the agreement, and its impact on the employees.

The court carefully examined the negotiation process and found that the applicant had engaged in good faith negotiations with the union. It was satisfied that the agreement contained the required minimum terms and conditions and provided for a better off overall outcome for the employees. The court noted that the agreement provided for fair and reasonable terms and conditions, including provisions for wages, hours of work, leave entitlements, and dispute resolution mechanisms. The court concluded that the agreement was made in good faith, complied with the statutory requirements, and provided a fair outcome for the employees. Consequently, the court approved the Keppel Prince Engineering Enterprise Agreement 2021 for PA Manufacturing Services.

The court ordered that the Keppel Prince Engineering Enterprise Agreement 2021 for PA Manufacturing Services be approved as a certified agreement under the Fair Work Act 2009. The agreement would be in effect from the date of the decision and would apply to the specified group of employees. The court's approval of the agreement ensured that the terms and conditions of employment were legally binding and enforceable, providing certainty and stability for both the employer and the employees.

Keppel Prince 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