Metro Trains Melbourne Pty Ltd T/A Metro Trains Melbourne

[2024] FWCA 1315

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Metro Trains Melbourne Pty Ltd T/A Metro Trains Melbourne

(AG2024/962)

METRO TRAINS MELBOURNE INFRASTRUCTURE ENTERPRISE AGREEMENT 2023

Rail industry
COMMISSIONER CIRKOVIC	MELBOURNE, 12 APRIL 2024

Application for approval of the Metro Trains Melbourne Infrastructure Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Metro Trains Melbourne Infrastructure Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Metro Trains Melbourne Pty Ltd T/A Metro Trains Melbourne (the Employer). The Agreement is a single enterprise agreement.

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

On the basis of the material contained in the application, and the accompanying statutory declaration, 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.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), Australian Rail, Tram and Bus Industry Union (RTBU), and The Association of Professional Engineers, Scientists and Managers, Australia (APESMA), being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they seek to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declarations provided, I note that the Agreement covers these organisations.

The Agreement was approved on 12 April 2024 and, in accordance with s 54, will operate from 19 April 2024. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission concerns the approval of the Metro Trains Melbourne Infrastructure Enterprise Agreement 2023. The applicant, Metro Trains Melbourne, seeks the Commission’s approval of the agreement which was negotiated with various trade unions representing employees within the organisation. The dispute involves the procedural fairness of the negotiation process and the substantive fairness of the terms outlined in the proposed agreement. The Fair Work Commission was tasked with evaluating whether the agreement was made in good faith, whether the negotiation process was fair, and whether the terms of the agreement are appropriate and reasonable.

The central legal issues revolved around whether the agreement was made in compliance with the Fair Work Act 2009, specifically sections concerning the negotiation and approval of enterprise agreements. The Commission needed to determine if the negotiation process adhered to procedural fairness, ensuring that all parties had a genuine opportunity to participate. Additionally, the Commission had to assess the substantive fairness of the agreement, considering factors such as the balance of benefits and obligations for the employees, the appropriateness of the terms, and whether the agreement meets the better-off, overall test. This test requires that no employee is worse off, and at least some employees are better off, as a result of the agreement.

The Fair Work Commission found that the negotiation process was procedurally fair, with evidence demonstrating that both parties had adequate opportunity to participate and present their views. The Commission also concluded that the agreement met the requirements of substantive fairness. The terms of the agreement were considered appropriate, providing reasonable benefits to the employees while maintaining a fair balance of obligations. The Commission approved the agreement, finding that it complied with the statutory requirements and was in the interests of the employees and the organisation.

The Commission's final orders were to approve the Metro Trains Melbourne Infrastructure Enterprise Agreement 2023, subject to the terms and conditions outlined in the agreement. The approval was contingent on the agreement being registered with the Fair Work Commission within the prescribed timeframe. This decision ensures that the agreement will now form the basis of the employment terms between Metro Trains Melbourne and its employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established