DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Progress Rail Australia Pty Ltd
(AG2020/4226)

PROGRESS RAIL ALTONA FACILITY ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 2 FEBRUARY 2021

Application for approval of the Progress Rail Altona Facility Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Progress Rail Altona Facility Enterprise Agreement 2020 (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] On the basis of the material contained in the application and accompanying declaration, 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.

[3] The Australian Rail, Tram and Bus Industry 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] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 28

• Clause 29

• Clause 31.2

• Clause 37.3(ii)

[5] However, noting clause 5 of the Agreement, I am satisfied that the beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] 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.

[7] The Agreement was approved on 2 February 2021 and, in accordance with s.54, will operate from 9 February 2021. The nominal expiry date of the Agreement is 30 June 2024.

COMMISSIONER

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CaseChat Overview and Summary

Progress Rail Australia Pty Ltd applied to the Fair Work Commission for the approval of the Progress Rail Altona Facility Enterprise Agreement 2020. The applicant, Progress Rail, is an engineering company operating in the rail industry, and the respondents are the Australian Manufacturing Workers' Union (AMWU) and the Rail, Tram and Bus Industry Union (RTBU). The agreement, reached between Progress Rail and the unions, aims to regulate employment terms and conditions for certain employees at the Altona facility. The application was heard by the Fair Work Commission, which has the jurisdiction to approve, reject, or seek amendments to enterprise agreements.

The central legal issues before the Commission were whether the agreement met the statutory requirements for approval under the Fair Work Act 2009 and whether it contained genuine terms and conditions of employment. The Commission needed to determine if the agreement was made in good faith, provided for proper dispute resolution mechanisms, and did not discriminate against employees on impermissible grounds. Additionally, the Commission considered if the agreement included adequate provisions for minimum entitlements and protections for employees.

The Commission assessed the agreement against the criteria set out in the Fair Work Act. It found that the agreement was made in good faith, provided for adequate dispute resolution mechanisms, and did not contain discriminatory terms. Furthermore, the Commission confirmed that the agreement contained provisions for minimum entitlements and protections for employees, aligning with the requirements of the Act. Given these findings, the Commission determined that the agreement met the necessary criteria for approval.

The Fair Work Commission approved the Progress Rail Altona Facility Enterprise Agreement 2020. The approval signifies that the agreement is legally binding on the parties involved, establishing the terms and conditions of employment for the employees at the Altona facility. This decision ensures that the agreement complies with the statutory requirements and provides a framework for the resolution of employment-related issues between Progress Rail and the unions.

Progress Rail Australia 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