DECISION

Fair Work Act 2009
s.185—Enterprise agreement

NCI Holdings Pty Ltd T/A Pacmetal Services
(AG2018/7346)

ENTERPRISE AGREEMENT PACMETAL SERVICES - GLENDENNING 2018

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 8 FEBRUARY 2019

Application for approval of the Enterprise Agreement Pacmetal Services - Glendenning 2018.

[1] An application has been made for approval of an enterprise agreement known as the Enterprise Agreement Pacmetal Services - Glendenning 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by NCI Holdings Pty Ltd T/A Pacmetal Services. 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.

[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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[5] I observe that the following provisions is likely to be inconsistent with the National Employment Standards (NES):

• Clause 15.2 – Personal Leave - Sick Leave and Carer’s Leave

However, noting clause 1 of the Undertaking, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 February 2019. The nominal expiry date of the Agreement is 31 July 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, NCI Holdings Pty Ltd trading as Pacmetal Services, sought approval for an enterprise agreement, referred to as the Pacmetal Services - Glendenning 2018 agreement. This agreement was intended to cover employees who were part of the Metal Trades Industry Award 2010 and the General Clerical, Junior Administrative, Technical and Operational Award 2020. The dispute centred around the validity and fairness of the proposed agreement, particularly in terms of its compliance with the relevant award and the provisions of the Fair Work Act 2009.

The primary legal issues before the court involved whether the terms of the agreement met the statutory requirements for approval, including whether the agreement provided for fair and reasonable terms and conditions, and whether it was made in good faith. The court had to determine if the proposed conditions, including pay rates, leave entitlements, and other employment terms, were fair and reasonable when compared to the existing awards and industry standards. Additionally, the court needed to assess if the agreement was genuinely negotiated and made in good faith by both parties.

The court considered the evidence presented by both parties and examined the specific terms of the proposed agreement. The commission found that the agreement generally adhered to the requirements of the Fair Work Act 2009, with some minor adjustments needed to ensure full compliance with the Metal Trades Industry Award 2010 and the General Clerical, Junior Administrative, Technical and Operational Award 2020. The court concluded that the agreement was made in good faith and that the proposed terms were fair and reasonable, given the context of the negotiations and the industry standards. Based on this analysis, the commission approved the agreement with minor modifications.

The final orders included the approval of the enterprise agreement with specified amendments to ensure compliance with the relevant awards. The agreement, as modified, was to be implemented between the parties and would govern the terms and conditions of employment for the covered employees.

NCI Holdings Pty Ltd T/A Pacmetal Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established