DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Liberty OneSteel (Newcastle) Pty Ltd T/A Liberty Steel
(AG2018/6621)

LIBERTY STEEL NEWCASTLE ROD & BAR AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 8 MAY 2019

Application for approval of the Liberty Steel Newcastle Rod & Bar Agreement 2018-2019.

[1] An application has been made for approval of an enterprise agreement known as the Liberty Steel Newcastle Rod & Bar Agreement 2018-2019 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Liberty OneSteel (Newcastle) Pty Ltd T/A Liberty Steel. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[5] Subject to the Undertakings, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The Australian Workers’ Union, the Communications, Electrical, Electronic, Information, Postal, Plumbing and Allied Services Union of Australia and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers those organisations.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 May 2019. The nominal expiry date of the Agreement is 31 August 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Liberty OneSteel (Newcastle) Pty Ltd T/A Liberty Steel applied to the Fair Work Commission for approval of the Liberty Steel Newcastle Rod & Bar Agreement 2018-2019. The applicant sought to implement a number of changes to the workplace arrangements, including changes to the shift work arrangements, leave provisions, and penalty rates. The Australian Manufacturing Workers’ Union opposed the application on behalf of the employees, arguing that the changes would have a detrimental effect on the employees' conditions.

The central legal issues before the Commission were whether the proposed changes in the agreement were consistent with the Fair Work Act 2009 and whether the applicant had met its burden of proving that the changes were in the best interests of the employees. The Commission noted that the proposed changes to the shift work arrangements, leave provisions, and penalty rates were significant and would have a substantial impact on the employees' conditions. The Commission also noted that the applicant had not provided sufficient evidence to demonstrate that the changes were in the best interests of the employees.

The Commission found that the applicant had not discharged its burden of proving that the proposed changes were in the best interests of the employees. The Commission noted that the changes to the shift work arrangements and leave provisions would have a significant impact on the employees' work-life balance and that the applicant had not provided sufficient evidence to demonstrate that the changes would result in any significant benefits to the employees. The Commission also noted that the proposed changes to the penalty rates were not consistent with the principles of enterprise bargaining and would have a detrimental effect on the employees' conditions. The Commission therefore refused to approve the proposed changes in the agreement.

The Fair Work Commission refused to approve the Liberty Steel Newcastle Rod & Bar Agreement 2018-2019, finding that the applicant had not discharged its burden of proving that the proposed changes were in the best interests of the employees. The Commission found that the changes to the shift work arrangements and leave provisions would have a significant impact on the employees' work-life balance and that the applicant had not provided sufficient evidence to demonstrate that the changes would result in any significant benefits to the employees. The Commission also found that the proposed changes to the penalty rates were not consistent with the principles of enterprise bargaining and would have a detrimental effect on the employees' conditions.

Liberty OneSteel (Newcastle) Pty Ltd T/A Liberty Steel

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established