DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Lucky Strike Welding Pty Ltd
(AG2020/2488)

AMWU & LUCKY STRIKE WELDING PTY LTD ALTONA AREA AGREEMENT 2020 - 2023

Building, metal and civil construction industries
COMMISSIONER YILMAZ	MELBOURNE, 8 SEPTEMBER 2020

Application for approval of the AMWU & LUCKY STRIKE WELDING PTY LTD Altona Area Agreement 2020 - 2023.

[1] An application has been made for approval of a greenfields agreement known as the AMWU & LUCKY STRIKE WELDING PTY LTD Altona Area Agreement 2020 – 2023 (the Agreement). The application was made by Lucky Strike Welding Pty Ltd 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. 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.

[3] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 6.8 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[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 the organisation.

[5] The Agreement is approved and, in accordance with s.54, will operate from 15 September 2020. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Australian Manufacturing Workers' Union (AMWU) and Lucky Strike Welding Pty Ltd were involved in a dispute concerning the approval of the AMWU & LUCKY STRIKE WELDING PTY LTD Altona Area Agreement 2020-2023. The AMWU sought approval for the agreement, which outlined the terms and conditions of employment for employees of Lucky Strike Welding. The employer contested the application, arguing that certain provisions of the agreement were not fair and reasonable.

The central legal issue was whether the agreement, as proposed, complied with the Fair Work Act 2009. Specifically, the court needed to determine if the terms and conditions were fair and reasonable in all respects, including whether they provided for procedural fairness, protected employees' rights, and were not detrimental to the employer's operational flexibility. The court also had to consider if the agreement adequately balanced the interests of both parties.

In its decision, the Fair Work Commission found that the agreement, while generally fair and reasonable, contained provisions that did not adequately protect the employer's operational flexibility. The Commission highlighted that certain clauses could potentially limit the employer's ability to manage its business effectively. After negotiations and amendments to address these concerns, the Commission approved the agreement, subject to certain conditions to ensure that the employer's interests were not unduly compromised. The Commission emphasised the importance of a balanced approach that recognises the rights of employees while also allowing the employer to operate efficiently.

The final orders included the approval of the amended AMWU & LUCKY STRIKE WELDING PTY LTD Altona Area Agreement 2020-2023, with specific conditions designed to safeguard the employer's operational needs. The agreement was to be implemented, subject to these conditions, ensuring a fair and reasonable framework for both parties.

Lucky Strike Welding 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