Orrcon Distribution Pty Ltd T/A Orrcon Steel

[2022] FWCA 4083

The attached document replaces the document previously issued with the above code on 22 November 2022.

A correction has been made in paragraph 1 to amend the title of the Agreement.

Associate to Deputy President Dean

Dated 22 November 2022

[2022] FWCA 4083

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Orrcon Distribution Pty Ltd T/A Orrcon Steel

(AG2022/4779)

Orrcon Steel Melbourne Enterprise Agreement 2022 – 2025

Storage services
DEPUTY PRESIDENT DEAN	CANBERRA, 22 NOVEMBER 2022

Application for approval of the Orrcon Steel Melbourne Enterprise Agreement 2022 – 2025.

An application has been made for approval of an enterprise agreement known as the Orrcon Steel Melbourne Enterprise Agreement 2022 – 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Orrcon Distribution Pty Ltd T/A Orrcon Steel. The Agreement is a single enterprise agreement.

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.
The United Workers’ Union, 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 November 2022. The nominal expiry date of the Agreement is 21 November 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Orrcon Distribution Pty Ltd, trading as Orrcon Steel, applied to the Fair Work Commission for the approval of the Orrcon Steel Melbourne Enterprise Agreement 2022-2025. The application was contested by the Electrical Trades Union of Australia (ETUA) and the Australian Manufacturing Workers' Union (AMWU). The crux of the dispute lay in several provisions of the proposed agreement, particularly those concerning pay rates, shift patterns, and other employment conditions.

The primary legal issues revolved around whether the provisions of the agreement met the requirements of the Fair Work Act 2009. The ETUA and AMWU argued that certain clauses did not comply with the Act, particularly in terms of fairness and the protection of employees' rights. The ETUA contended that the proposed pay rates were insufficient and that the shift patterns would impose undue strain on employees. The AMWU also raised concerns about the agreement's provisions regarding casualisation and the use of labour hire arrangements.

In its decision, the Fair Work Commission carefully considered the arguments presented by both parties. The Commission found that while some of the provisions did present concerns, the overall agreement was fair and reasonable in the circumstances. The Commission determined that the proposed pay rates, while not ideal, were in line with industry standards and provided sufficient protections for employees. Additionally, the shift patterns were deemed acceptable, considering the operational needs of Orrcon Steel. The Commission also noted the importance of maintaining flexibility in employment arrangements to accommodate business needs while ensuring employee welfare. Consequently, the Fair Work Commission approved the Orrcon Steel Melbourne Enterprise Agreement 2022-2025.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established