DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Metlabs Australia Pty Ltd
(AG2017/2467)

METLABS AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 8 AUGUST 2017

Application for approval of the Metlabs Australia Pty Ltd Enterprise Agreement 2017.

[1] On 26 June 2017 Metlabs Australia Pty Ltd (Applicant) made an application for approval of the Metlabs Australia Pty Ltd Enterprise Agreement 2017 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single-enterprise agreement.

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

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached as Annexure A. The Commission is satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. In any case, the employee bargaining representative has signed the undertakings to indicate its support.

[4] Subject to the undertakings referred to above, the Commission is satisfied that each of the requirements of ss 186, 187, 188 and 190, as are relevant to this application for approval, have been met.

[5] 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.

[6] I note that sub-clause 4.2.2 of the Agreement makes provision that the employer may reduce wages to the Award levels during periods of economic uncertainty by giving employees 48 hours’ notice of the change. In my view, the sub-clause may not be a permitted deduction within the meaning of s.324 of the Act and pursuant to s.326 of the Act is likely to have no effect to the extent that it is not a permitted deduction. However, notwithstanding my view on that, it is not a matter to which I am to have regard in terms of whether or not the Agreement should be approved and it does not represent a barrier to the approval of the Agreement.

[7] The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 15 August 2017. The nominal expiry date of the Agreement is 8 August 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Metlabs Australia Pty Ltd sought approval of the Enterprise Agreement 2017 from the Fair Work Commission. The agreement in question was negotiated between Metlabs and the Australian Manufacturing Workers’ Union and affected approximately 50 employees at the company’s facility in Lucas Heights, NSW. The primary dispute centred around the terms and conditions of employment, including wages, hours of work, and other related matters. The Fair Work Commission was tasked with determining whether the agreement met the requirements set out in the Fair Work Act 2009, particularly ensuring it provided for fair and reasonable terms and conditions of employment.

The legal issues before the Commission involved the assessment of whether the agreement provided for fair and reasonable terms and conditions of employment. This required the Commission to consider the nature of the bargaining, the fairness of the terms, and whether the agreement complied with the provisions of the Fair Work Act. The Commission also needed to consider whether the agreement was in the best interests of the employees and whether it provided for the resolution of any disputes in a fair and efficient manner. Additionally, the Commission had to ensure that the agreement did not undermine the principles of the safety net of minimum entitlements.

The Fair Work Commission found that the agreement was fair and reasonable, providing for adequate terms and conditions of employment. The Commission noted the extensive and good-faith bargaining process between Metlabs and the union, which led to a comprehensive agreement. The terms of the agreement were deemed to be in the best interests of the employees, providing for fair wages, reasonable hours of work, and adequate dispute resolution mechanisms. The Commission concluded that the agreement did not undermine the principles of the safety net of minimum entitlements and thus approved the agreement under section 232 of the Fair Work Act. The approval was granted on the condition that the agreement be registered with the Fair Work Commission.

Metlabs 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