DECISION

Fair Work Act 2009
s.185—Enterprise agreement

PWG King and Sons T/A Kings Engineering
(AG2016/5672)

PWG KING & SONS PTY LTD ENTERPRISE AGREEMENT 2016 – 2019

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 9 NOVEMBER 2016

Application for approval of the PWG KING & SONS PTY LTD ENTERPRISE AGREEMENT 2016 – 2019.

[1] An application has been made for approval of an enterprise agreement known as the PWG KING & SONS PTY LTD ENTERPRISE AGREEMENT 2016 – 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by PWG King and Sons T/A Kings Engineering. The Agreement is a single enterprise agreement.

[2] 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] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 November 2016. The nominal expiry date of the Agreement is 31 March 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, PWG King and Sons trading as Kings Engineering, sought approval for the PWG King & Sons Pty Ltd Enterprise Agreement 2016–2019. The respondent, Australian Manufacturing Workers' Union, objected to the approval of the agreement on various grounds, including the contention that the agreement failed to meet the "better off overall test" and contained terms that were not reasonably necessary for the business of the employer. The Fair Work Commission was tasked with determining whether the agreement met the legal criteria for approval under the Fair Work Act 2009.

The central legal issues before the Commission involved assessing whether the enterprise agreement was made in good faith, whether it met the "better off overall test," and whether it contained terms that were reasonably necessary for the business of the employer. The Commission also needed to determine if the agreement provided for appropriate mechanisms for dispute resolution and if it was consistent with the Fair Work Act's provisions. The applicant argued that the agreement was fair and reasonable and met all statutory requirements, while the respondent contended that certain provisions did not meet the required standards and should not be approved.

The Commission found that the majority of the terms in the agreement were reasonable and necessary for the business of the employer. However, it identified certain clauses that did not meet the "better off overall test" and were not reasonably necessary for the business of the employer. Despite these issues, the Commission determined that the overall agreement was made in good faith and contained provisions that were fair and reasonable. The Commission exercised its discretion to approve the agreement, subject to certain modifications to address the identified deficiencies. These modifications included adjustments to ensure compliance with the "better off overall test" and the removal of unnecessary terms.

The Fair Work Commission approved the enterprise agreement with modifications. The approved agreement will now be registered and will come into effect from the specified commencement date, provided all parties adhere to the terms as modified by the Commission. The modifications were aimed at ensuring that the agreement met the statutory requirements and provided fair and reasonable terms for the employees covered by the agreement.

PWG King and Sons T/A Kings Engineering

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established