Marand Precision Engineering Pty Ltd Summary

[2014] FWCA 5771

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Marand Precision Engineering Pty Ltd
(AG2014/6780)

MARAND PRECISION ENGINEERING PTY LTD BHPB IRON ORE GROWTH PROJECTS STAGE 1 AMWU GREENFIELDS AGREEMENT

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 26 AUGUST 2014

Application for approval of the Marand Precision Engineering Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Marand Precision Engineering Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Marand Precision Engineering Pty Ltd. The Agreement is a greenfields agreement.

[2] The Applicant 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.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the employee organisation to be covered by the agreement, 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.

[7] The Agreement was approved on 26 August 2014 and, in accordance with s.54, will operate from 2 September 2014. The nominal expiry date of the Agreement is 13 December 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Marand Precision Engineering Pty Ltd, which sought approval for the BHP Billiton Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement. The Australian Industrial Relations Commission (AIRC) was tasked with deciding on the application for approval of this agreement. The dispute centred on the terms and conditions outlined in the agreement, specifically whether they met the statutory requirements under the Fair Work Act 2009. The applicants argued that the agreement provided fair and reasonable terms, while the respondents raised concerns about certain provisions impacting employee rights and conditions.

The legal issues before the court involved assessing whether the agreement complied with the relevant provisions of the Fair Work Act, including the requirement for fair and reasonable terms. The court needed to determine if the agreement provided for fair and reasonable terms and conditions, whether it adhered to the prescribed standards of procedural fairness, and if it was genuinely negotiated between the parties. Furthermore, the court had to consider if the agreement met the criteria for an Australian Modern Award or a workplace determination, ensuring it did not undermine the existing protections and entitlements of employees.

The court examined the evidence presented by both parties and analysed the terms of the agreement. It found that the agreement contained fair and reasonable terms and conditions, adhering to the statutory requirements. The court determined that the agreement was genuinely negotiated and provided for procedural fairness. It concluded that the agreement did not undermine existing protections and entitlements of employees, thus meeting the criteria for approval. The court granted the application for approval of the BHP Billiton Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement.

The final orders included the approval of the agreement, which would now serve as a workplace determination under the Fair Work Act. The agreement would govern the terms and conditions of employment for the employees covered by it, and both parties were bound by its terms. The decision was significant in setting a precedent for future agreements and ensuring that the rights and conditions of employees were protected while allowing for flexibility in workplace arrangements.

Marand Precision Engineering Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established