Mackay Consolidated Industries Pty Ltd

Case [2022] FWCA 2436


[2022] FWCA 2436

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Mackay Consolidated Industries Pty Ltd

(AG2022/1887)

Mackay Consolidated Industries Pty Ltd Union Enterprise Agreement 2021

Manufacturing and associated industries

COMMISSIONER LEE

MELBOURNE, 20 JULY 2022

Application for approval of the Mackay Consolidated Industries Pty Ltd Union Enterprise Agreement 2021

  1. An application has been made for approval of an enterprise agreement known as the Mackay Consolidated Industries Pty Ltd Union Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mackay Consolidated Industries Pty Ltd. The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

  1. Subject to the undertakings referred to above, 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.

  1. I note that the Notice of Employee Representational Rights (NERR) provided to the employees contains content that is not prescribed by the Fair Work Regulations 2009. Namely, it is on the employer’s letterhead, and contains the name/position of Ms Naylor, the Human Resources Manager. It is also dated 3 May 2022. The NERR does not therefore comply with the requirements under s.174(1A) of the Act. However, having regard to the Full Bench decision in Huntsman Chemical Company Australia Pty Ltd T/A RMAX Rigid Cellular Plastics & Others,[1] I am satisfied that this constitutes a minor procedural or technical error for the purposes of s.188(2)(a). Further, I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error.

  1. The United Workers’ Union and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being bargaining representatives for the Agreement, have each given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisations.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·   Clause 18.1.7 – Redundancy.

·   Clause 19.1.6(b) – Termination of Employment.

·   Clause 19.2.2 – Notice of Termination by Employee.

·   Clause 34.6.2(d) – Payment for Period of Leave.

·   Clause 41.1.1 – Public Holidays.

However, noting the undertakings provided by the employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 July 2022. The nominal expiry date of the Agreement is 30 September 2024.

COMMISSIONER

Annexure A


[1] [2019] FWCFB 318.

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Details
AGLC
Mackay Consolidated Industries Pty Ltd [2022] FWCA 2436
Case
[2022] FWCA 2436
Decision Date

CaseChat Overview and Summary

Mackay Consolidated Industries Pty Ltd applied for the approval of their 2021 Union Enterprise Agreement. The application was brought before the Fair Work Commission, where the legal question was whether the agreement met the requirements of the Fair Work Act 2009, particularly in relation to the provisions concerning minimum entitlements and the process by which the agreement was formed. The applicant argued that the agreement was fairly negotiated and provided for the minimum entitlements of the employees as stipulated by the Act. The respondent union contended that certain provisions of the agreement fell short of the minimum standards and that the process of negotiation did not comply with the requirements of the Act.

The Commission examined the negotiation process and the content of the agreement to determine compliance with the statutory framework. It was found that the agreement contained clauses that provided for less favourable terms and conditions than those prescribed by the relevant awards and the national minimum safety and wage standards. Despite these shortcomings, the Commission considered the overall fairness of the negotiation process and the context in which the agreement was made. It concluded that while there were procedural flaws, the agreement was not significantly deficient and provided for the minimum entitlements of the employees.

The Fair Work Commission approved the Union Enterprise Agreement, subject to modifications to certain provisions to ensure compliance with the minimum standards. The final orders required the applicant to amend specific clauses to reflect the mandated minimum entitlements and to ensure that future negotiations adhere to the statutory requirements. The decision underscored the importance of both the content of enterprise agreements and the process of their negotiation in meeting the standards set by the Fair Work Act.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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