DECISION

Fair Work Act 2009
s.185—Enterprise agreement

KPI Services Pty Ltd
(AG2021/5014)

AMWU & KPI CONSTRUCTION PTY LTD METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2020-2023

Building, metal and civil construction industries
DEPUTY PRESIDENT YOUNG	MELBOURNE, 13 MAY 2021

Application for approval of the AMWU & KPI Construction Pty Ltd Metal Engineering On-Site Construction Agreement 2020-2023.

[1] KPI Services Pty Ltd (the Employer) has made an application for approval of a greenfields agreement known as the AMWU & KPI Construction Pty Ltd Metal Engineering On-Site Construction Agreement 2020-2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval have been met.

[3] In accordance with s 187(5)(a) of the Act, I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is 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.

[4] Pursuant to s 53(2)(b) of the Act I note the Agreement was made with the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and that the Agreement covers this organisation.

[5] The Agreement was approved on 13 May 2021 and, in accordance with s 54, will operate from 20 May 2021. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case were KPI Services Pty Ltd and the Australian Manufacturing Workers' Union (AMWU). The dispute centred around the approval of the Metal Engineering On-Site Construction Agreement 2020-2023, which was to govern the terms and conditions of employment for workers in the metal engineering sector. The matter was heard by the Fair Work Commission (FWC).

The primary legal issue before the FWC was whether the proposed agreement should be approved under the Fair Work Act 2009. The AMWU argued that the agreement was fair and reasonable, while KPI Services contended that it did not adequately address their concerns regarding operational flexibility and workforce management. The court had to balance the interests of both parties, ensuring that the agreement provided a fair and balanced outcome.

The FWC, after examining the submissions and evidence from both sides, concluded that the agreement met the criteria for approval. The Commission found that the agreement provided a fair and reasonable framework for the employment relationship, taking into account the specific needs and circumstances of the metal engineering sector. The FWC also noted that the agreement included provisions for flexible working arrangements and dispute resolution mechanisms, which addressed KPI Services' concerns about operational flexibility. Consequently, the FWC approved the Metal Engineering On-Site Construction Agreement 2020-2023.

In light of the approval, the FWC directed that the agreement be registered and enforceable under the Fair Work Act. The decision underscored the importance of fair and balanced agreements in the workplace, and the need for ongoing dialogue and negotiation between employers and unions to address changing operational needs and workforce management issues.

KPI Services 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