Mechanical Maintenance Solutions (Australia) Pty Ltd

[2024] FWCA 3260

[2024] FWCA 3260

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Mechanical Maintenance Solutions (Australia) Pty Ltd

(AG2024/3012)

MMSA NATIONAL ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 18 SEPTEMBER 2024

Application for approval of the MMSA National Enterprise Agreement 2024.

1. Mechanical Maintenance Solutions (Australia) Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the MMSA National Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 3 July 2024 and the Agreement was made on 26 July 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

1. On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187 and 188, as are relevant to this application for approval, has been met.

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

• Clause 1.7.6(iii): Redundancy

• Clause 5.2.4: Public holiday substitution

1. However, noting clause 1.3.3 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

1. The Agreement was approved on 18 September 2024 and, in accordance with s.54, will operate from 25 September 2024. The nominal expiry date of the Agreement is 25 September 2028.

Variation

1. The Employer notified the Fair Work Commission of a typographical error in the wages table of Appendix 1 of the Agreement and requested that this error be corrected. The Employer advised that the 1 July 2026 rate for MMSA3 employees of $57.51 should be $47.51. On 22 August 2024, my chambers invited the parties to provide submissions as to whether this is an obvious error, irregularity or defect pursuant to s.218A of the FW Act.

1. On 26 August 2024, the Employer provided a revised copy of the wage table on page 32 of the Agreement and submitted that the wage table should be read in conjunction with clause 1(a) of Appendix 1 which specifies a 4% year on year increase in rates of pay and that $57.51 does not represent a 4% increase of the preceding value of $45.68. The Employer further submitted that the 4% wage increase per annum was explained to all employees.  

1. The views of the bargaining representatives regarding the proposed amendment of the Agreement were sought, but no response was received by the deadline of 12 September 2024. 

1. I am satisfied this error is an obvious error, defect or irregularity. I order, pursuant to s.218A of the FW Act, that the Agreement be varied to correct this error by deleting the amount ‘$57.51’ from column 5 of row 6 in the hourly rates of pay table in Appendix 1 on page 32 of the Agreement and replacing it with ‘$47.51’.

1. The variation will operate from 25 September 2024.

COMMISSIONER

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