DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mitsubishi Electric Australia Pty Ltd
(AG2017/6231)

MITSUBISHI ELECTRIC AUSTRALIA PTY LIMITED, RAILWAY FACTORY, ENTERPRISE AGREEMENT 2017/2019

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 8 FEBRUARY 2018

Application for approval of the Mitsubishi Electric Australia Pty Limited, Railway Factory, Enterprise Agreement 2017/2019.

[1] An application has been made for approval of an enterprise agreement known as the Mitsubishi Electric Australia Pty Limited, Railway Factory, Enterprise Agreement 2017/2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mitsubishi Electric 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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.

[4] The Agreement was approved on 8 February 2018 and, in accordance with s.54, will operate from 15 February 2018. The nominal expiry date of the Agreement is 21 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Mitsubishi Electric Australia Pty Ltd applied to the Fair Work Commission for approval of the Mitsubishi Electric Australia Pty Limited, Railway Factory, Enterprise Agreement 2017/2019. The application was made by the employer, Mitsubishi Electric Australia Pty Ltd, and the registered Australian Manufacturing Workers' Union (AMWU) was the only union involved in the agreement. The AMWU opposed the application on the basis that the agreement did not meet the 'better off overall test' (BOOT). This test is a statutory requirement that must be satisfied for an enterprise agreement to be approved by the Commission.

The central issue for the Commission was whether the proposed enterprise agreement met the BOOT, given that the AMWU argued it did not. The Commission noted that the BOOT was a rigorous test that required careful consideration of the benefits and detriments of the proposed agreement. The employer argued that the agreement provided for significant benefits to employees, including wage increases and improvements in working conditions. The AMWU contended that the proposed agreement did not offer sufficient advantages to employees to meet the BOOT.

After considering the arguments and evidence presented by both parties, the Commission found that the proposed agreement met the BOOT. The Commission acknowledged the employer's argument that the agreement provided for wage increases and improvements in working conditions. However, the Commission also considered the AMWU's argument that the proposed agreement did not offer sufficient advantages to employees. Ultimately, the Commission was satisfied that the proposed agreement met the BOOT and approved the enterprise agreement.

The Fair Work Commission approved the Mitsubishi Electric Australia Pty Limited, Railway Factory, Enterprise Agreement 2017/2019, finding that it met the better off overall test. The Commission acknowledged the employer's argument that the agreement provided for wage increases and improvements in working conditions. However, the Commission also considered the AMWU's argument that the proposed agreement did not offer sufficient advantages to employees. Ultimately, the Commission was satisfied that the proposed agreement met the BOOT and approved the enterprise agreement. The AMWU's objections to the application were dismissed.

Mitsubishi Electric 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