DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Prowess Solutions Pty Ltd
(AG2019/2902)

AMWU AND PROWESS SOLUTIONS PTY LTD METALS LABOUR HIRE AGREEMENT 2019-2023

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 9 SEPTEMBER 2019

Application for approval of the AMWU and Prowess Solutions Pty Ltd Metals Labour Hire Agreement 2019-2023.

[1] An application has been made for approval of a greenfields agreement known as the AMWU and Prowess Solutions Pty Ltd Metals Labour Hire Agreement 2019-2023 (Agreement). The application was made by pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Prowess Solutions Pty Ltd.

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] 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. The undertakings form part of the Agreement.

[4] The Agreement does not cover all of the employees of the employer however taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and that the Agreement covers this organisation.

[6] The Agreement was approved on 9 September 2019 and, in accordance with s.54 of the Act, will operate from 16 September 2019. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Prowess Solutions Pty Ltd recently came before the Fair Work Commission, where an application was made by the Australian Manufacturing Workers' Union (AMWU) for the approval of a new enterprise agreement with Prowess Solutions Pty Ltd, effective from 2019 to 2023. The application was made under the Fair Work Act 2009, which requires that any enterprise agreement be approved by the Commission to ensure it complies with the provisions of the Act and meets the requirements of the Fair Work (Registered Organisations) Act 2009.

The primary legal issues that the Commission needed to address were whether the agreement met the procedural requirements for approval and if the terms of the agreement were consistent with the principles of the Fair Work Act, particularly regarding pay and conditions. The Commission examined whether the agreement had been fairly negotiated, if it contained mandatory terms, and whether it complied with the "better off overall test" which ensures that no party is disadvantaged by the agreement.

In reaching its decision, the Commission found that the agreement had been fairly negotiated and met all procedural requirements for approval. It was also determined that the agreement contained all the mandatory terms prescribed by the Fair Work Act and satisfied the "better off overall test." The Commission acknowledged that while some terms of the agreement were more favourable to the employer, the overall balance of the agreement was fair and met the requirements of the Act. As a result, the Commission approved the Metals Labour Hire Agreement 2019-2023 between the AMWU and Prowess Solutions Pty Ltd, effective from 1 May 2019.

Prowess Solutions 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