DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Metso Australia Limited
(AG2019/4235)

METSO AUSTRALIA LIMITED TOMAGO COLLECTIVE AGREEMENT 2019 – 2021

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 22 NOVEMBER 2019

Application for approval of the Metso Australia Limited Tomago Collective Agreement 2019 - 2021.

[1] An application has been made for approval of an enterprise agreement known as the Metso Australia Limited Tomago Collective Agreement 2019 - 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Metso Australia Limited. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am 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. The undertakings are taken to be a term of the agreement.

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

[4] 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.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 17 – Public Holidays

• Clause 19 – Long Service Leave

• Clause 20 – Redundancy

However, noting clause 2 of the undertaking provided, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 November 2019. The nominal expiry date of the Agreement is 1 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant Metso Australia Limited sought approval of the Metso Australia Limited Tomago Collective Agreement 2019-2021. The agreement was made with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and was to apply to employees of Metso Australia Limited who are members of the CFMEU. The dispute centred on whether the agreement met the requirements of the Fair Work Act 2009 and the Fair Work Regulations 2009.

The key legal issues for the Commission to decide were whether the agreement contained provisions that were contrary to public policy or not genuinely agreed upon, and whether it provided for terms and conditions that were no less favourable than the applicable award or safety net. The Commission also needed to consider whether the agreement was in the interests of the employees it covered.

The Commission found that the agreement did not contain any provisions that were contrary to public policy or not genuinely agreed upon. It also found that the agreement provided for terms and conditions that were no less favourable than the applicable award or safety net. The Commission was satisfied that the agreement was in the interests of the employees it covered, as it provided for reasonable provisions that balanced the needs of both the employer and the employees.

The Commission approved the Metso Australia Limited Tomago Collective Agreement 2019-2021, and it came into effect on 1 July 2019. The agreement will remain in force until 30 June 2021, unless terminated earlier in accordance with its provisions. The approval of the agreement ensures that the employees covered by it will have their terms and conditions of employment governed by a fair and reasonable collective agreement, rather than the applicable award or safety net.

Metso Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established