MMD Australia Pty Ltd Summary

[2024] FWCA 574

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

MMD Australia Pty Ltd

(AG2024/177)

MMD AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT GRAYSON	SYDNEY, 9 FEBRUARY 2024

Application for approval of the MMD Australia Pty Ltd Enterprise Agreement 2023

Introduction

MMD Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the MMD Australia Pty Ltd Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

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. By reason of the transitional arrangements for the Amending Act and the notification time for the Agreement of 20 October 2021, the genuine agreement requirements for agreement approval in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, apply to the present application. Further, as the Agreement was made on 18 January 2024 the better off overall test requirements in Part 2-4 of the Fair Work Act as amended on 6 June 2023 apply.

Section 186, 187 and 188

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.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 February 2024. The nominal expiry date of the Agreement is 1 June 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application by MMD Australia Pty Ltd, the Fair Work Commission was tasked with determining whether the MMD Australia Pty Ltd Enterprise Agreement 2023 should be approved. This agreement was presented as a potential new enterprise agreement, intended to replace the existing MMD Australia Pty Ltd Enterprise Agreement 2019. The application arose as a consequence of negotiations between the employer and the relevant employee representatives, seeking to establish new terms and conditions of employment.

The primary legal issue before the Commission was whether the proposed agreement met the requirements of the Fair Work Act 2009, specifically sections that pertain to the approval of enterprise agreements. The Commission needed to ascertain if the agreement was procedurally sound, if it had been fairly negotiated, and if it complied with the provisions of the Act, including the "better off overall test." The Commission also needed to consider if the agreement contained terms that were fair and reasonable in all respects.

Upon examining the application, the Commission found that the agreement was the product of good faith negotiations between the parties. It satisfied all procedural requirements and met the "better off overall test." The terms of the agreement were deemed fair and reasonable, taking into account the interests of both the employees and the employer. The Commission concluded that the proposed agreement would be beneficial to the workforce and did not disadvantage any party. Consequently, the application was approved, and the MMD Australia Pty Ltd Enterprise Agreement 2023 was registered.

The Fair Work Commission ordered that the MMD Australia Pty Ltd Enterprise Agreement 2023 be approved and registered, effective from the date of the decision. This decision replaces the previous enterprise agreement and will govern the employment conditions of the employees covered by the agreement.

MMD Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established