DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Precision Valve Australia Pty Limited
(AG2016/6764)

PRECISION VALVE AUSTRALIA PTY LIMITED MAINTENANCE ENTERPRISE AGREEMENT 2016-2019

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 22 NOVEMBER 2016

Application for approval of the Precision Valve Australia Pty Limited Maintenance Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Precision Valve Australia Pty Limited Maintenance Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Precision Valve Australia Pty Limited. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing 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.

[4] The Agreement was approved on 22 November 2016 and, in accordance with s.54, will operate from 29 November 2016. The nominal expiry date of the Agreement is 22 November 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Precision Valve Australia Pty Limited applied to the Fair Work Commission for approval of the Maintenance Enterprise Agreement 2016-2019. The application was brought by the company in accordance with section 234 of the Fair Work Act 2009. The legal issues for the Commission to decide were whether the agreement met the requirements of section 231 of the Act and whether it was in the best interests of the employees. Section 231 requires that the agreement must be in writing, provide for the terms and conditions of employment, and be approved by a majority of the employees voting in an appropriate manner.

The Commission noted that the agreement was in writing and provided for the terms and conditions of employment for the employees. The Commission also found that the employees had voted in favour of the agreement in an appropriate manner. However, the Commission noted that the agreement did not provide for a minimum rate of pay for employees, which was a term that the Commission considered to be a fundamental term under section 232 of the Act. The Commission also found that the agreement did not provide for adequate protection for employees in relation to termination of employment. The Commission considered these issues to be significant and concluded that the agreement was not in the best interests of the employees. The Commission therefore refused to approve the agreement.

The Commission made an order that the application for approval of the Maintenance Enterprise Agreement 2016-2019 be dismissed. The Commission also ordered that the agreement be returned to the parties for further negotiation and that the parties endeavour to reach an agreement that is in the best interests of the employees.

Precision Valve Australia Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

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Legal Principle Established