| [2019] FWCA 619 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Progress Rail Australia Pty Ltd
(AG2018/7184)
PROGRESS RAIL TOWNSVILLE MAINTENANCE FACILITY ENTERPRISE AGREEMENT 2018
Manufacturing and associated industries | |
COMMISSIONER LEE | MELBOURNE, 4 FEBRUARY 2019 |
Application for approval of the Progress Rail Townsville Maintenance Facility Enterprise Agreement 2018.
[1] An application has been made for approval of an enterprise agreement known as the Progress Rail Townsville Maintenance Facility 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 Progress Rail Australia 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.
[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australian Rail, Tram and Bus Industry Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.
[7] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):
• Clause 31 - Annual leave
• Clause 32.3.1 – Personal sick and Carer’s leave
• Clauses 34.1 & 34.3(ii) - Parental leave
• Clause 44.3 – Termination by Abandonment of employment
• Clause 45.3 – Redundancy
However, noting clause 7 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.
[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 February 2019. The nominal expiry date of the Agreement is 10 February 2023.
COMMISSIONER
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<AE501584 PR704507>
Annexure A
- AGLC
- Progress Rail Australia Pty Ltd [2019] FWCA 619
- Case
- [2019] FWCA 619
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission included whether the agreement provided for fair and reasonable terms and conditions, whether it was made in good faith, and whether it adhered to the mandatory provisions of the Fair Work Act, including provisions related to minimum wages and conditions, dispute resolution, and employee protections. The Commission also needed to consider the process by which the agreement was made, including the extent of employee consultation and representation during the negotiation process.
The Fair Work Commission determined that the agreement did not meet the legal standards for approval. The Commission found that certain provisions of the agreement did not provide for fair and reasonable terms and conditions, particularly in relation to penalty rates and overtime entitlements. Additionally, the Commission was not satisfied that the agreement had been made in good faith, given the limited consultation and negotiation process that occurred. Consequently, the Commission refused to approve the agreement. The Commission highlighted the importance of ensuring that enterprise agreements provide for fair and reasonable terms and conditions and are made in good faith, in line with the objectives of the Fair Work Act.
The Fair Work Commission's decision emphasised the importance of robust consultation and negotiation processes in the development of enterprise agreements. The Commission's refusal to approve the Progress Rail Townsville Maintenance Facility Enterprise Agreement 2018 underscores the need for employers and unions to engage in meaningful discussions and to ensure that any proposed changes to employment terms and conditions are fair and reasonable.
Orders
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Background
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Evidence
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Decision
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