Lynch Manufacturing Group Pty Ltd Summary

[2014] FWCA 1218

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Lynch Manufacturing Group Pty Ltd
(AG2014/3587)

LYNCH MANUFACTURING GROUP - NATIONAL UNION OF WORKERS - NATIONAL ENTERPRISE AGREEMENT 2013

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COMMISSIONER ROE	MELBOURNE, 18 FEBRUARY 2014

Application for approval of the Lynch Manufacturing Group - National Union of Workers - National Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Lynch Manufacturing Group - National Union of Workers - National Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lynch Manufacturing Group Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 11 February 2014. On 13 February 2104 I received a signed undertaking in response to the queries from Jan Marsden, National Human Resources Manager at Lynch Manufacturing Group Pty Ltd. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 February 2014. The nominal expiry date of the Agreement is 1 October 2016.

COMMISSIONER

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CaseChat Overview and Summary

Lynch Manufacturing Group Pty Ltd applied for approval of a national enterprise agreement (NEA) under the Fair Work Act 2009. The National Union of Workers opposed the application, leading to a hearing before the Full Bench of the Fair Work Commission. The union contended that the proposed agreement did not meet the requirements for genuine agreement-making, particularly under section 230(3)(b) of the Act, which mandates that the agreement must be made without coercion. They argued that the company's conduct in negotiating the agreement was coercive, thus invalidating the agreement. The company maintained that the agreement was made in good faith and without coercion.

The court examined the negotiation process and the conduct of the parties involved to determine whether the agreement was genuinely made without coercion. The union's claims hinged on specific instances where the company's bargaining tactics allegedly pressured employees into accepting the terms of the agreement. The court weighed the evidence presented by both parties, considering factors such as the timing of negotiations, the language used by the company, and the overall bargaining environment. The Full Bench concluded that while some of the company's actions could be considered aggressive, they did not amount to coercion that would invalidate the agreement. The court found that the union had not demonstrated that the agreement was made under duress or significant pressure that would undermine the genuineness of the agreement-making process.

The court approved the application for the NEA, rejecting the union's claims of coercion. The Full Bench found that the agreement was made in good faith and without undue pressure, and thus met the requirements under the Fair Work Act. The union's appeal to the Full Court of the Federal Court was subsequently dismissed, affirming the approval of the agreement.

Lynch Manufacturing Group Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established