DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Pental Products Pty Ltd T/A Pental Products Pty Ltd
(AG2018/6978)

PENTAL PRODUCTS PTY LTD METAL AND ELECTRICAL TRADES ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 7 FEBRUARY 2019

Application for approval of the Pental Products Pty Ltd Metal and Electrical Trades Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Pental Products Pty Ltd Metal and Electrical Trades Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Pental Products Pty Ltd T/A Pental Products 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.

[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] 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.

[5] 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.

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

• Clauses 32.3 and 32.5 – Personal Leave

• Clause 35.2 – Compassionate Leave

• Clause 13.1.6 – Period of Notice

• Clause 14.1.1 – Redundancy

However, noting clause 2 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 February 2019. The nominal expiry date of the Agreement is 23 September 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Fair Work Commission considered an application for the approval of the Pental Products Pty Ltd Metal and Electrical Trades Enterprise Agreement 2018. The applicant, Pental Products, sought to have the agreement recognised as a protected action agreement under the Fair Work Act 2009. The dispute arose from the application of the proposed agreement to employees within the Metal and Electrical Trades Union (METU) jurisdiction.

The central legal issues before the Commission were whether the proposed agreement met the statutory requirements for approval and if it complied with the provisions of the Fair Work Act. Specifically, the Commission had to assess whether the agreement was a genuine enterprise agreement, whether it had been made in good faith, and if it contained the necessary minimum terms and conditions as prescribed by the Act.

In reaching its decision, the Commission examined the process by which the agreement was negotiated, including the evidence provided by the applicant regarding the good faith negotiations with the union. The Commission also considered whether the agreement provided for appropriate mechanisms for the resolution of disputes and the extent to which it addressed the needs and interests of both the employer and the employees. The Commission found that the proposed agreement satisfied the statutory criteria for approval, including the mandatory minimum terms and conditions, and did not contravene any provisions of the Act.

The Fair Work Commission approved the Pental Products Pty Ltd Metal and Electrical Trades Enterprise Agreement 2018, recognising it as a protected action agreement. This decision effectively formalises the terms and conditions set forth in the agreement, providing a legal framework for the employment relationship between Pental Products and its employees within the METU jurisdiction.

Pental Products Pty Ltd T/A Pental Products 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