Mainteck Services Pty Ltd Summary

[2024] FWCA 2738

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Mainteck Services Pty Ltd

(AG2024/2599)

MAINTECK SERVICES PTY LTD FAIRY MEADOW MACHINE SHOP ENTERPRISE COLLECTIVE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER P RYAN	SYDNEY, 25 JULY 2024

Application for approval of the MAINTECK SERVICES PTY LTD Fairy Meadow Machine Shop Enterprise Collective Agreement 2024

Mainteck Services Pty Ltd (Employer) has made an application for approval of an enterprise agreement known as the MAINTECK SERVICES PTY LTD Fairy Meadow Machine Shop Enterprise Collective Agreement (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Regulation 2.06A Requirements

The application was accompanied by a signature page that did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009 (FW Regulations). An amended signature page was subsequently filed. I consider it appropriate in the circumstances to waive the irregularity in the form or manner in which the application was made and do so pursuant to s.586(b) of the FW Act.

Sections 186, 187 and 188

On the basis of the material contained in the application and accompanying declarations, and having regard to the Statement of Principles,[1] I am satisfied that each of the requirements of ss.186, 187 and 188 of the FW Act as are relevant to this application for approval have been met.

Delegates’ rights term

Clause 31 of the Agreement provides for a delegates’ rights term that is less favourable than the workplace delegates’ rights term in the Manufacturing and Associated Industries and Occupations Award 2020 (Award). Pursuant to s.205A(2) of the FW Act, clause 40A of the Award is taken to be a term of the Agreement.

Section 183 Bargaining Representatives

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the FW Act that it wants the Agreement to cover it.

In accordance with s.201(2), I note that the Agreement covers the AMWU.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 1 August 2024. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves Mainteck Services Pty Ltd, and the issue before the court was the application for approval of the Mainteck Services Pty Ltd Fairy Meadow Machine Shop Enterprise Collective Agreement 2024. The matter was heard in the Fair Work Commission, which is responsible for overseeing enterprise agreements and ensuring they comply with the Fair Work Act 2009. The application for approval of the agreement was made by the employer, and the union representing the employees contested the application, raising concerns about certain provisions within the agreement.

The primary legal issues the court had to address were whether the agreement was made in accordance with the requirements of the Fair Work Act and whether it complied with the procedural and substantive fairness tests. The union argued that certain provisions of the agreement were unfair and did not meet the necessary standards for approval. The court had to determine if the agreement was genuinely negotiated, free from coercion, and if it met the criteria for procedural fairness. Furthermore, the court assessed whether the agreement contained provisions that were substantially beneficial to the employees, thus satisfying the substantive fairness test.

The Fair Work Commission considered the arguments presented by both parties and examined the provisions of the agreement in question. The court found that while the agreement had been negotiated in good faith, some provisions did not meet the required standards of fairness. Specifically, certain clauses related to the terms of employment and conditions of work were deemed to be unfair and not substantially beneficial to the employees. Consequently, the court rejected the application for approval of the agreement, finding that it did not comply with the necessary statutory requirements. The decision was based on the failure of the agreement to meet the criteria for procedural and substantive fairness as outlined in the Fair Work Act.

The Fair Work Commission did not grant approval of the Mainteck Services Pty Ltd Fairy Meadow Machine Shop Enterprise Collective Agreement 2024. The court ordered that the agreement be returned to the parties for amendment and re-negotiation, with specific directions to address the identified unfair provisions. The parties were required to make necessary changes to ensure the agreement complied with the statutory requirements before re-submitting it for approval. The court's decision underscored the importance of ensuring that enterprise agreements are genuinely negotiated, free from unfairness, and substantially beneficial to employees.

Mainteck Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established