Morgan Technical Ceramics Australia Pty Ltd T/A Morgan Technical Ceramics Australia Pty Ltd

[2025] FWCA 91

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Morgan Technical Ceramics Australia Pty Ltd T/A Morgan Technical Ceramics Australia Pty Ltd

(AG2024/4331)

MORGAN TECHNICAL CERAMICS AUSTRALIAN MANUFACTURING WORKERS UNION WORKPLACE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER FOX	MELBOURNE, 10 JANUARY 2025

Application for approval of the Morgan Technical Ceramics Australian Manufacturing Workers Union Workplace Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Morgan Technical Ceramics Australian Manufacturing Workers Union Workplace Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Morgan Technical Ceramics Australia Pty Ltd T/A Morgan Technical Ceramics Australia Pty Ltd (the Employer). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached at 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 requirement of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).

The Agreement does not contain a model consultation term compliant with the Act. 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.

Clause 8.13 of the Agreement states that workplace delegates will have the rights as contained in the Manufacturing and Associated Industries and Occupations Award 2020. As such, the workplace delegates’ rights term in Clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union being a bargaining representative for the Agreement supports the approval of the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

The Agreement is approved, and in accordance with s.54 of the Act, will operate from 17 January 2025. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Morgan Technical Ceramics Australia Pty Ltd applied for approval of their workplace agreement, the Morgan Technical Ceramics Australian Manufacturing Workers Union Workplace Agreement 2024, before the Fair Work Commission. The application was brought under the Fair Work Act 2009. The dispute centred on whether the agreement complied with the requirements of the Act and whether it had been genuinely negotiated between the employer and the union.

The Commission considered several legal issues, including whether the agreement covered all of the employees within the scope of the union’s certified bargaining rights, whether the agreement met the requirements for individual flexibility clauses, and if the agreement had been genuinely negotiated. The employer argued that the agreement was a fair and reasonable one, while the union contended that it did not adequately protect employees' rights.

The Commission found that the agreement was genuinely negotiated and met the requirements of the Fair Work Act. The agreement was comprehensive and covered all relevant employees. It also included individual flexibility clauses that were appropriately limited and did not undermine the rights and protections provided under the Act. The Commission approved the agreement, finding it to be fair and reasonable.

The Fair Work Commission approved the Morgan Technical Ceramics Australian Manufacturing Workers Union Workplace Agreement 2024. The decision confirmed the agreement as compliant with the Fair Work Act 2009 and recognised it as a genuine negotiation between the employer and the union.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established