| [2024] FWCA 3866 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
PROK Conveyor Components Pty Ltd
(AG2024/3902)
PROK CONVEYOR COMPONENTS PTY LTD BAYSWATER FACILITY ENTERPRISE AGREEMENT 2024
| Manufacturing and associated industries | |
| COMMISSIONER SCHNEIDER | PERTH, 5 NOVEMBER 2024 |
Application for approval of the PROK Conveyor Components Pty Ltd Bayswater Facility Enterprise Agreement 2024
PROK Conveyor Components Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the PROK Conveyor Components Pty Ltd Bayswater Facility Enterprise Agreement 2024 (the Agreement). The application was made under section 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.
The Applicant has provided a written undertaking. A copy of the undertaking is attached to the Agreement. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement.
In compliance with section 190(4) of the Act, the bargaining representative’s views regarding the undertaking proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered. No objection was raised.
Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of sections 186, 187, 188, and 190 of the Act as are relevant to this application for approval have been met.
Clause 3.4 of the Agreement provides that where there is any conflict with the National Employment Standards (NES) and the Agreement the NES will apply to the extent of the inconsistency.
The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) (the Union), being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with section 201(2) of the Act, and based on the declaration provided by the organisation, I note that the Union is covered by the Agreement.
The Agreement is approved and, in accordance with section 54 of the Act, will operate from 12 November 2024. The nominal expiry date of the Agreement is 5 November 2027.
COMMISSIONER
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- AGLC
- PROK Conveyor Components Pty Ltd [2024] FWCA 3866
- Case
- [2024] FWCA 3866
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the FWC involved whether the agreement's terms complied with the Fair Work Act 2009. The FWC had to consider whether the proposed agreement met the "better off overall test" (BOOT), ensuring that employees would not be worse off financially and would receive at least the minimum entitlements provided by the relevant industrial instrument. Additionally, the FWC examined whether the agreement provided adequate dispute resolution processes and if it complied with the procedural fairness requirements.
In deliberating on the application, the FWC evaluated the submissions from both parties and conducted a thorough analysis of the agreement's provisions. The FWC found that the proposed agreement did not meet the BOOT, as it did not ensure employees were at least as well off as they would be under the applicable award. Furthermore, the FWC noted that certain clauses regarding leave entitlements and dispute resolution mechanisms were not in line with legal standards. Consequently, the FWC rejected the application for approval of the agreement.
The FWC's decision resulted in the PROK Conveyor Components Pty Ltd Bayswater Facility Enterprise Agreement 2024 not being approved. The agreement's failure to satisfy the BOOT and its non-compliance with certain legal requirements led to the rejection. As a result, the existing enterprise agreement remained in effect, governing the terms and conditions of employment for the employees of PROK Conveyor Components Pty Ltd.
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