Pro Rack Installations Pty Ltd

[2024] FWCA 2709

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Pro Rack Installations Pty Ltd

(AG2024/2603)

AMWU & PRO RACK INSTALLATIONS PTY LTD METAL & ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2023 - 2026

Building, metal and civil construction industries
COMMISSIONER ALLISON	MELBOURNE, 25 JULY 2024

Application for approval of the AMWU & PRO RACK INSTALLATIONS PTY LTD Metal & Engineering On-Site Construction Agreement 2023 - 2026

An application has been made for approval of an enterprise agreement known as the AMWU & PRO RACK INSTALLATIONS PTY LTD Metal & Engineering On-Site Construction Agreement 2023 - 2026 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Pro Rack Installations Pty Ltd. The Agreement is a single enterprise agreement.

The agreement title on the Notice of Employee Representational Rights (NERR) that was issued to the employees was the “AMWU & The Trustee for Mitchel Family Trust t/a Pro Rack Installations Pty Ltd Metal & Engineering On-Site Construction Agreement 2023 – 2026” which does not match the title of the Agreement to be approved. I am satisfied that this was a minor procedural or technical error and that the employees were not likely to have been disadvantaged by it. Accordingly, I exercise the discretion conferred by s.188(5) of the Act to disregard this error.

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 “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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 August 2024. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Pro Rack Installations Pty Ltd recently appeared before the Fair Work Commission to seek approval of a new enterprise agreement with the Australian Manufacturing Workers' Union. The dispute involved the terms and conditions set out in the proposed Metal & Engineering On-Site Construction Agreement 2023 - 2026. The Commission was required to determine whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The central legal issues before the Commission were whether the agreement was genuinely negotiated and whether it complied with the "no disadvantage" test. The Commission had to examine if the terms of the agreement were fairly negotiated between the parties and if it did not place employees in a worse position than they would have been in the absence of the agreement. Additionally, the Commission needed to consider whether the agreement provided for a genuine process for dispute resolution.

In delivering its decision, the Commission found that the agreement had been genuinely negotiated between the parties and did not disadvantage employees. The Commission acknowledged the efforts made by both parties to reach a consensus on the terms of the agreement, and it was satisfied that the process was fair and transparent. The Commission also determined that the agreement complied with the "no disadvantage" test, as it provided for fair terms and conditions of employment that did not place employees at a disadvantage. As a result, the Commission approved the Metal & Engineering On-Site Construction Agreement 2023 - 2026.

The Fair Work Commission approved the Metal & Engineering On-Site Construction Agreement 2023 - 2026 between Pro Rack Installations Pty Ltd and the Australian Manufacturing Workers' Union. The Commission found that the agreement was genuinely negotiated and did not disadvantage employees. The Commission's decision provides certainty to both parties and ensures that the agreement will be in effect for the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established