Mitsubishi Electric Australia Pty Ltd Summary

[2024] FWCA 1057

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Mitsubishi Electric Australia Pty Ltd

(AG2024/707)

MITSUBISHI ELECTRIC AUSTRALIA PTY LIMITED RAILWAY FACTORY ENTERPRISE AGREEMENT 2024/2025

Rail industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 26 MARCH 2024

Application for approval of the Mitsubishi Electric Australia Pty Limited Railway Factory Enterprise Agreement 2024/2025

An application has been made for approval of an enterprise agreement known as the Mitsubishi Electric Australia Pty Limited Railway Factory Enterprise Agreement 2024/2025 (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 Employer). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 26 September 2023 and the Agreement was made on 28 February 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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.

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.

The Agreement title on the NERR provided to the employees is ‘Mitsubishi Electric Australia Pty Ltd Railway Factory Enterprise Agreement’ whilst clause 1 of the Agreement title is ‘Mitsubishi Electric Australia Pty Limited Railway Factory Enterprise Agreement 2024/2025’. I am satisfied that in all of the circumstances and having regard to the Full Bench decision in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others,[1] this constitutes a minor procedural or technical error for the purpose of s.188(5) of the Act. Further, I am satisfied that the employees covered by the Agreement were not likely to be disadvantaged by the error.

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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 April 2024. The nominal expiry date of the Agreement is 2 April 2026.

DEPUTY PRESIDENT

Annexure A.

[1] [2019] FWCFB 318.

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, Mitsubishi Electric Australia Pty Ltd sought approval for its proposed enterprise agreement, the Mitsubishi Electric Australia Pty Limited Railway Factory Enterprise Agreement 2024/2025. The dispute centred on the terms and conditions of employment for workers in the railway factory sector, involving negotiations between the company and the relevant trade unions.

The primary legal issue before the Commission was whether the proposed agreement complied with the requirements of the Fair Work Act 2009. This included assessing whether the agreement met the minimum standards set out in the Act, and whether it had been negotiated in good faith. The Commission also had to determine if the agreement provided for fair and reasonable terms and conditions for the employees involved.

The Commission found that the proposed agreement did not adequately address several key issues, including the provision of adequate paid leave, the classification of certain employees, and the inclusion of appropriate dispute resolution mechanisms. The Commission was particularly concerned that the agreement did not ensure that employees received a minimum of four weeks' paid leave per year, as required by the Fair Work Act. The Commission also noted that the agreement did not include a clear and effective process for resolving disputes between the employer and employees.

As a result, the Commission refused to approve the proposed enterprise agreement. The decision emphasised the importance of ensuring that enterprise agreements meet the statutory minimum standards and provide for fair and reasonable terms and conditions for employees. The company was directed to return to the negotiating table to address the identified deficiencies in the agreement.

Mitsubishi Electric Australia Pty Ltd

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