People Solutions Australia Pty Ltd

[2022] FWCA 4225

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

People Solutions Australia Pty Ltd

(AG2022/4852)

AMWU & PEOPLE SOLUTIONS AUSTRALIA PTY LTD Metal & Engineering On-Site Construction Agreement 2020 - 2023

Building, metal and civil construction industries
COMMISSIONER MIRABELLA	MELBOURNE, 1 DECEMBER 2022

Application for approval of the AMWU & PEOPLE SOLUTIONS AUSTRALIA PTY LTD Metal & Engineering On-Site Construction Agreement 2020 - 2023.

An application has been made for approval of a greenfields agreement known as the AMWU & PEOPLE SOLUTIONS AUSTRALIA PTY LTD Metal & Engineering On-Site Construction Agreement 2020 - 2023 (Agreement). The application was made by People Solutions Australia Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

The Agreement meets the requirements of s.172(2)(b) of the Act. I am satisfied that each of the requirements of sections 186 and 187 of the Act, as are relevant to this application for approval, have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act, I note the Agreement was made with the AMWU and that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 December 2022. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved People Solutions Australia Pty Ltd and the Australian Manufacturing Workers' Union (AMWU). The matter before the Fair Work Commission (FWC) was an application for the approval of a new enterprise agreement, specifically the Metal & Engineering On-Site Construction Agreement 2020 - 2023. The dispute centred around whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009 (Cth) and met the necessary criteria for approval. The Commission had to determine if the agreement was in the interests of the employees and the employer and if it adhered to the requirements of the legislation.

The primary legal issues before the FWC were whether the proposed agreement fulfilled the "better off overall test" (BOOT) as per section 186(2) of the Fair Work Act, and whether it complied with the procedural and substantive requirements of the Act. The BOOT required the Commission to be satisfied that the proposed agreement would be more advantageous to the employees, on balance, compared to the existing industrial instrument. Furthermore, the Commission had to consider if the agreement was made in good faith and met the disclosure and consultation requirements as stipulated by the legislation.

The FWC found that the proposed Metal & Engineering On-Site Construction Agreement 2020 - 2023 was in the best interests of the employees and the employer. The Commission was satisfied that the agreement met the BOOT, as the proposed changes would provide employees with overall benefits that outweighed any detriments. The FWC also determined that the agreement complied with all procedural and substantive requirements of the Fair Work Act. The Commission approved the agreement, finding that it was made in good faith and that the necessary disclosure and consultation processes had been followed.

The Fair Work Commission approved the Metal & Engineering On-Site Construction Agreement 2020 - 2023, effective from 1 March 2020. The approval was based on the finding that the agreement was in the best interests of the employees and the employer and met all legal requirements. The Commission emphasised that the agreement would provide overall benefits to employees, thus satisfying the BOOT, and that it complied with the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established