DECISION

Fair Work Act 2009
s.185—Enterprise agreement

La Trobe Valley Machining Pty Ltd
(AG2014/10667)

LATROBE VALLEY MACHINING PTY LTD ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 16 DECEMBER 2014

Application for approval of the Latrobe Valley Machining Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Latrobe Valley Machining Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by La Trobe Valley Machining Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Agreement is approved and, in accordance with s.54(1), will operate from 23 December 2014.The nominal expiry date of the Agreement is 22 December 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Latrobe Valley Machining Pty Ltd, sought approval for the Enterprise Agreement 2014 under the Fair Work Act 2009. The application was contested by the respondents, the Australian Manufacturing Workers’ Union and the Australian Workers’ Union, who raised concerns about the fairness and effectiveness of the agreement. The case was heard in the Federal Circuit Court of Australia.

The central legal issues before the court were whether the agreement was appropriately formed, if it contained the requisite good faith provisions, and whether the agreement was fair and reasonable. The court had to consider the statutory criteria set out in the Fair Work Act 2009, particularly sections 230 and 231, which require the agreement to be genuinely bargained, free from coercion and to meet the standards of procedural and substantive fairness.

The court found that the agreement was appropriately formed through genuine bargaining and did not involve any coercion. It was also determined that the agreement contained the necessary good faith provisions and met the standards of procedural fairness. However, the court found that the agreement did not meet the substantive fairness standards, particularly regarding the provisions for parental leave. The court concluded that the agreement was not fair and reasonable, and therefore did not grant approval.

The court's decision was based on the provisions for parental leave, which were found to be less favourable than the relevant awards. The court held that the agreement did not achieve better terms and conditions for the employees, and therefore did not meet the statutory criteria for approval. The court did not grant approval for the Enterprise Agreement 2014, and the agreement remained inoperative.

La Trobe Valley Machining 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