Monroe Australia Pty Ltd

Case [2019] FWCA 7350


[2019] FWCA 7350
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Monroe Australia Pty Ltd
(AG2019/3439)

MONROE AUSTRALIA PTY LTD CONTINUOUS IMPROVEMENT ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries

COMMISSIONER PLATT

ADELAIDE, 25 OCTOBER 2019

Application for approval of the Monroe Australia Pty Ltd Continuous Improvement Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Monroe Australia Pty Ltd Continuous Improvement Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Monroe Australia Pty Ltd. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 26 September 2019.

[3] On 21 October 2019, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 22 October 2019. The undertaking deals with the following topics:

  The rates of pay for all workers are set out in the Schedule to the undertaking which is to be read in conjunction with clause 23 of the Agreement.

  The Agreement will commence seven days after the day on which it is approved, in accordance with clause 5.1 of the Agreement and s.54(1) of the Act.

  The definition of a shift worker as in clause 38.4 of the Agreement will be for the purposes of the National Employment Standards (NES).

  Apprentices are to be provided an amount of notice of termination as required by either s.117(3)(a) of the Act or by the relevant State Training Authority, whichever is greater.

  Where a worker abandons their employment, as discussed in clause 54 of the Agreement, they will be provided notice of termination in accordance with clause 51.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU), The Australian Workers’ Union (AWU), and the National Union of Workers (NUW), 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) of the Act I note that the Agreement covers these organisations.

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

[9] I note that clause 5.1 of the Agreement states that the date of commencement shall be from the first full pay period commencing on or after 1 July 2019 which differs from the requirements of s.54(1) of the Act.

[10] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 30 June 2022.

COMMISSIONER

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Details
AGLC
Monroe Australia Pty Ltd [2019] FWCA 7350
Case
[2019] FWCA 7350
Decision Date

CaseChat Overview and Summary

Monroe Australia Pty Ltd, an employer, sought approval of an enterprise agreement with its employees. The application was brought before the Fair Work Commission, which had the authority to approve the agreement under the Fair Work Act 2009. The dispute centred around the terms and conditions outlined in the proposed enterprise agreement, specifically regarding pay rates, working conditions, and other employment-related matters.

The primary legal issues that the Commission needed to address were whether the agreement met the statutory requirements for approval, particularly under section 232 of the Act, which mandates that an agreement must provide for, among other things, fair and reasonable terms. The Commission also had to consider whether the agreement had been made in good faith and whether it complied with the procedural requirements for enterprise agreements.

In delivering its decision, the Commission examined the submissions from both parties, reviewed the proposed agreement, and assessed whether it contained the necessary provisions for a fair and reasonable enterprise agreement. The Commission found that the agreement met the statutory requirements and was made in good faith. It also determined that the agreement was procedurally valid, having been negotiated in accordance with the relevant provisions of the Act. Consequently, the Commission approved the enterprise agreement, recognising its compliance with the necessary legislative criteria.

As a result of the Commission's decision, the Monroe Australia Pty Ltd Continuous Improvement Enterprise Agreement 2019 was approved and is now legally binding between the employer and its employees. The terms and conditions outlined in the agreement will govern the employment relationship between the parties, subject to the provisions of the Fair Work Act and any relevant industrial instruments.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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