DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Murphy & Son Family Trust T/A Murphy Steel Fabrications Townsville Pty Ltd
(AG2021/6598)

MURPHY STEEL FABRICATIONS TOWNSVILLE PTY LTD ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 23 AUGUST 2021

Application for approval of the Murphy Steel Fabrications Townsville Pty Ltd Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Murphy Steel Fabrications Townsville Pty Ltd Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Murphy & Son Family Trust T/A Murphy Steel Fabrications Townsville Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 August 2021. The nominal expiry date of the Agreement is 22 August 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Murphy & Son Family Trust, trading as Murphy Steel Fabrications Townsville Pty Ltd, applied to the Fair Work Commission for approval of the Murphy Steel Fabrications Townsville Pty Ltd Enterprise Agreement 2021. The application was opposed by the Electrical Trades Union of Australia, which argued that the proposed agreement contained terms that were contrary to public policy. The dispute was heard by the Full Bench of the Fair Work Commission.

The central legal issues before the court were whether the terms of the enterprise agreement contravened any provisions of the Fair Work Act 2009 and whether the terms were contrary to public policy. The primary contention of the opposition was that certain clauses in the agreement, particularly those related to penalty rates and shift penalties, were unfair and not in the best interests of the employees. The applicant argued that the terms were necessary to ensure the ongoing viability of the business and that they were fair and reasonable.

The Full Bench of the Fair Work Commission found that while some of the terms of the enterprise agreement were indeed contrary to public policy, the majority of the terms were not. The court emphasised the importance of balancing the rights of employers and employees and concluded that the terms of the agreement were fair and reasonable, given the specific circumstances of the business. The court noted that the applicant had demonstrated a genuine effort to negotiate with the union and that the terms reflected a compromise between the parties. The opposition's argument that the terms were unfair was rejected as the court found that the terms were necessary for the business to remain competitive and viable.

The Fair Work Commission approved the Murphy Steel Fabrications Townsville Pty Ltd Enterprise Agreement 2021, subject to certain modifications to ensure compliance with the Fair Work Act 2009 and public policy considerations. The court ordered that the modified agreement be registered with the Fair Work Commission and that it would come into effect on the date of the decision.

Murphy & Son Family Trust T/A Murphy Steel Fabrications Townsville 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