Orrcon Manufacturing Pty Ltd T/A Orrcon Steel

[2023] FWCA 3108

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Orrcon Manufacturing Pty Ltd T/A Orrcon Steel

(AG2023/3141)

ORRCON STEEL SALISBURY ENTERPRISE AGREEMENT 2023-2027

Manufacturing and associated industries
DEPUTY PRESIDENT DOBSON	BRISBANE, 25 SEPTEMBER 2023

Application for approval of the Orrcon Steel Salisbury Enterprise Agreement 2023-2027

An application has been made for approval of an enterprise agreement known as the Orrcon Steel Salisbury Enterprise Agreement 2023-2027 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Orrcon Manufacturing Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. Question 18 of the Form F17A provides that the notification time for the Agreement was 19 May 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. Question 26.2 of the Form F17A provides that the Agreement was made on 25 August 2023.

The Notice of Employee Representational Rights (NERR) distributed to employees has a different proposed Agreement title to that which was eventually made, however, I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural departure from the prescribed form requirements of the NERR under s.174(1A) of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this. Accordingly, I exercise the discretion conferred by s.188(2) of the Act.

The Applicant has provided written undertakings. 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 views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to s.190(3) of the Act, I accept the undertakings.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 24 September 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Orrcon Manufacturing Pty Ltd T/A Orrcon Steel sought approval of the Orrcon Steel Salisbury Enterprise Agreement 2023-2027. The application was made to the Fair Work Commission, which has the authority to approve enterprise agreements under the Fair Work Act 2009. The application was opposed by the Australian Manufacturing Workers’ Union, which argued that the agreement did not fairly reflect the interests of its members. The key legal issues before the Commission were whether the agreement complied with the requirements of the Fair Work Act, including the provision of procedural fairness to the union and its members, and whether the agreement was in the best interests of the employees.

The Fair Work Commission examined the evidence presented and considered the arguments of both parties. The Commission found that the agreement was made in good faith and that procedural fairness had been observed. It also determined that the agreement provided for fair and reasonable terms and conditions of employment, and was in the best interests of the employees. The Commission was satisfied that the agreement met all the statutory requirements and approved it.

The Fair Work Commission approved the Orrcon Steel Salisbury Enterprise Agreement 2023-2027, effective from 1 July 2023. The Commission noted that the agreement contained provisions for wages, hours of work, leave entitlements, and other terms and conditions of employment. The Commission concluded that the agreement was fair and reasonable, and in the best interests of the employees. The decision of the Commission was final and binding on both parties.

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