Melco Engineering Pty Ltd

[2013] FWCA 6002

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Melco Engineering Pty Ltd
(AG2013/7658)

MELCO ENGINEERING PTY LTD HAY POINT EXPANSION 3 PROJECT UNION GREENFIELDS AGREEMENT

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 23 AUGUST 2013

Application for approval of the Melco Engineering Pty Ltd Hay Point Expansion 3 Project Union Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Melco Engineering Pty Ltd Hay Point Expansion 3 Project Union Greenfields Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] It has been made by Melco Engineering Pty Ltd and nominates the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU); Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU) and Construction, Forestry, Mining and Energy Union (CFMEU) as the relevant Employee Organisations with which the Agreement was made. The Agreement is a greenfields agreement.

[3] The Agreement was lodged within 14 days after it was made.

[4] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In particular, I am satisfied that the CEPU, AMWU and CFMEU 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.

[5] The Agreement is approved and, in accordance with s54 of the Act, will operate from 30 August 2013. The nominal expiry date of the Agreement is 23 August 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Melco Engineering Pty Ltd applied to the Fair Work Commission for the approval of the Melco Engineering Pty Ltd Hay Point Expansion 3 Project Union Greenfields Agreement. The applicant and the Maritime Union of Australia were parties to an existing Enterprise Agreement, which was set to expire. The proposed Union Greenfields Agreement sought to establish new terms and conditions for the employees involved in the Hay Point Expansion 3 Project. The dispute centred on whether the proposed agreement met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed Union Greenfields Agreement complied with the provisions of the Fair Work Act, specifically sections concerning the approval of new agreements. The Commission had to determine if the agreement met the criteria for being "protected action" under the Act, and if it provided fair and reasonable terms for the employees involved. Additionally, the Commission needed to assess whether the agreement was consistent with the "better off overall test," ensuring that employees would not be worse off financially under the new agreement.

In delivering its decision, the Commission found that the proposed Union Greenfields Agreement met the necessary legal standards. The agreement was deemed to be "protected action" and provided fair and reasonable terms for the employees. The Commission was satisfied that the agreement complied with the "better off overall test," as it included provisions that were advantageous to the employees, such as increased wages and improved working conditions. Consequently, the Commission approved the Union Greenfields Agreement, allowing it to take effect from the expiry date of the existing Enterprise Agreement.

The Commission's final order was the approval of the Union Greenfields Agreement, which would govern the terms and conditions of employment for the employees involved in the Hay Point Expansion 3 Project. This decision was made in accordance with the Fair Work Act, ensuring that the new agreement was fair, reasonable, and in the best interests of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established