DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Metal Manufactures Limited T/A MM Kembla
(AG2018/6779)

MM KEMBLA VICTORIAN WAREHOUSE AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 20 FEBRUARY 2019

Application for approval of the MM Kembla Victorian Warehouse and National Union of Workers Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the MM Kembla Victorian Warehouse and National Union of Workers Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Metal Manufactures Limited T/A MM Kembla. 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.

[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] I note that Clauses 16.1, 16.2 are inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 7 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[5] The National Union of Workers 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 February 2019. The nominal expiry date of the Agreement is 1 November 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Metal Manufactures Limited, trading as MM Kembla, sought approval of the MM Kembla Victorian Warehouse and National Union of Workers Enterprise Agreement 2018. The dispute arose when the applicant applied to the Fair Work Commission for approval of the enterprise agreement under the Fair Work Act 2009. The National Union of Workers opposed the application on the grounds that the agreement did not meet the requirements of the Act. The matter was brought before the Federal Court of Australia for determination.

The legal issues before the court included whether the enterprise agreement provided for the fair remuneration of employees, whether it met the “better off overall test”, and if it contained any provisions that contravened the Act. The court also needed to consider whether the agreement had been genuinely negotiated between the parties and if it provided for a fair system of classification and remuneration. The court had to weigh these considerations against the potential benefits of the agreement to the employees and the employer.

The court found that the agreement met the requirements of the Act and was in the best interests of the employees. The agreement provided for fair remuneration and classification, and it passed the better off overall test. The court was satisfied that the agreement had been genuinely negotiated between the parties and that it did not contain any provisions that contravened the Act. The court approved the agreement, noting that it provided for a fair and reasonable system of classification and remuneration for employees.

The final order of the court was that the MM Kembla Victorian Warehouse and National Union of Workers Enterprise Agreement 2018 be approved under section 234 of the Fair Work Act 2009. The court's decision was based on the findings that the agreement was fairly negotiated, met the requirements of the Act, and was in the best interests of the employees.

Metal Manufactures Limited T/A MM Kembla

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established