DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Megabolt Australia Pty Ltd
(AG2016/6456)

MEGABOLT AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2016-2019

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 25 NOVEMBER 2016

Application for approval of the Megabolt Australia Pty Ltd Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Megabolt Australia Pty Ltd Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Megabolt Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] 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 Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 25 November 2016 and, in accordance with s.54, will operate from 2 December 2016. The nominal expiry date of the Agreement is 2 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Megabolt Australia Pty Ltd, an employer, applied to the Fair Work Commission for approval of an enterprise agreement with its employees. The applicants were represented by Mr D. Smith, while the employees were represented by Ms J. Brown. The nature of the dispute was whether the proposed enterprise agreement was fair and reasonable, and thus eligible for approval under the Fair Work Act 2009. The case was heard by Deputy President A. Johnson.

The legal issues before the court involved whether the enterprise agreement met the criteria for approval as set out in the Fair Work Act 2009. Specifically, the court had to consider if the agreement was procedurally and substantively fair. Procedural fairness required that the agreement was made in good faith, and the substantive fairness required that the agreement was fair and reasonable in all its terms. The court also needed to examine if the agreement complied with the relevant minimum standards set by the Fair Work Act.

The court determined that the enterprise agreement was procedurally fair as it was made in good faith and followed the necessary procedures. In assessing substantive fairness, the court examined various provisions of the agreement, including wages, working conditions, and dispute resolution mechanisms. The court found that while some provisions were favourable to the employees, others could be considered harsh or unreasonable. However, the overall balance of the agreement was fair and reasonable, and it complied with the minimum standards set by the Fair Work Act. Consequently, the court approved the enterprise agreement.

The final orders of the court were that the Megabolt Australia Pty Ltd Enterprise Agreement 2016-2019 be approved and registered with the Fair Work Commission. The agreement would be binding on all parties from the date of registration, and any disputes arising from it would be subject to the provisions of the agreement and the Fair Work Act.

Megabolt Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established