DECISION

Fair Work Act 2009
s.185—Enterprise agreement

MHE-Demag Australia Pty Ltd
(AG2018/5794)

MHE-DEMAG AUSTRALIA PTY. LTD. NSW ENTERPRISE BARGAINING AGREEMENT 2018-2019

Manufacturing and associated industries
COMMISSIONER JOHNS	MELBOURNE, 14 MARCH 2019

Application for approval of the MHE-Demag Australia Pty. Ltd. NSW Enterprise Bargaining Agreement 2018-2019.

[1] An application has been made for approval of an enterprise agreement known as the MHE-Demag Australia Pty. Ltd. NSW Enterprise Bargaining Agreement 2018-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MHE-Demag Australia Pty Ltd. 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] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[4]
The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 March 2019. The nominal expiry date of the Agreement is 31 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of MHE-Demag Australia Pty Ltd, the Fair Work Commission (FWC) was tasked with considering an application for the approval of the NSW Enterprise Bargaining Agreement 2018-2019. The applicant, MHE-Demag Australia Pty Ltd, sought to have the agreement approved under the Fair Work Act 2009. The dispute involved the terms and conditions of employment for employees within the NSW jurisdiction who were covered by the proposed agreement.

The legal issues before the FWC encompassed whether the agreement met the requirements of the Fair Work Act, specifically whether it was a "better off overall test" (BOOT) agreement. This test assesses if the proposed agreement provides employees with a minimum 2.5% annual wage increase over three years and if it ensures that employees are no worse off than under the existing industrial instrument. Furthermore, the FWC needed to consider if the agreement contained appropriate provisions for the classification of employees, their wages, and other terms of employment.

In delivering its decision, the FWC meticulously examined the proposed agreement against the statutory requirements. The FWC found that the agreement satisfied the BOOT, providing employees with a 2.5% annual wage increase over three years, thus meeting the legislative criteria. The FWC also assessed the classification, wages, and other terms of employment, ensuring they were fair and reasonable. Consequently, the FWC approved the MHE-Demag Australia Pty Ltd NSW Enterprise Bargaining Agreement 2018-2019, recognising it as a lawful and fair agreement. The approval was granted on the condition that the agreement would be subject to the usual processes and obligations under the Fair Work Act.

MHE-Demag 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