McKechnie Iron Foundry Pty Ltd

[2014] FWCA 3880

FAIR WORK COMMISSION

DECISION

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

McKechnie Iron Foundry Pty Ltd
(AG2014/6063)

MCKECHNIE IRON FOUNDRY PTY LTD SINGLE ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 12 JUNE 2014

Application for approval of the McKechnie Iron Foundry Pty Ltd Single Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the McKechnie Iron Foundry Pty Ltd Single Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by McKechnie Iron Foundry Pty Ltd. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“[1] Clause 10 within the Agreement be interpreted and understood to apply to the existing agreement wage rates applicable to employees as at 31 January 2014, for those employees covered by the Agreement.

[2] The minimum wage rates, which were supplied to the Fair Work Commission on 19 May 2014, have been sighted by the signatories to these undertakings and there is agreement that these minimum rates accurately reflect those paid by the Company, inclusive of the 3% wage increase prescribed in Clause 10 of the Agreement.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[4] As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

[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.

[6] The Australian Workers’ Union, being a bargaining representative for the Agreement, 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 this organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 June 2014. The nominal expiry date of the Agreement is 31 January 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

McKechnie Iron Foundry Pty Ltd was the subject of an application for approval of the McKechnie Iron Foundry Pty Ltd Single Enterprise Agreement 2014. The applicant, McKechnie Iron Foundry Pty Ltd, sought approval from the Fair Work Commission (FWC) for the agreement, which was entered into between the company and the employees represented by the Australian Manufacturing Workers' Union (AMWU). The nature of the dispute centred on whether the agreement complied with the requirements of the Fair Work Act 2009 and met the standards for a single enterprise agreement.

The legal issues before the FWC included whether the agreement met the criteria for a single enterprise agreement under section 173 of the Fair Work Act, whether it was free from any illegality or unfairness, and whether it provided adequate protections and benefits for the employees. The applicant argued that the agreement was fair and reasonable, while the AMWU contended that certain provisions did not adequately protect the employees' interests.

The FWC considered the provisions of the agreement and the submissions from both parties. The Commission found that the agreement generally met the requirements of a single enterprise agreement and was free from any illegality or unfairness. However, the FWC made some minor amendments to certain provisions to ensure they provided adequate protections and benefits for the employees. The FWC approved the agreement with these minor amendments, concluding that it was fair and reasonable and met the standards for a single enterprise agreement.

The FWC's final order was that the McKechnie Iron Foundry Pty Ltd Single Enterprise Agreement 2014, as amended, be approved. The agreement would now apply to the employees represented by the AMWU, providing them with the terms and conditions of employment set out in the agreement. The approval of the agreement marked the conclusion of the dispute, with both parties accepting the FWC's decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established