QMAG Pty Limited Summary

[2023] FWCA 2545

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

QMAG Pty Limited

(AG2023/2334)

QMAG PTY LIMITED PARKHURST ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT EASTON	SYDNEY, 14 AUGUST 2023

Application for approval of the QMAG Pty Limited Parkhurst Enterprise Agreement 2023.

QMAG Pty Limited (the Employer) has made an application for the approval of the QMAG Pty Limited Parkhurst Enterprise Agreement 2023 (the Agreement). The application was made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings, a copy of which are attached as Annexure A to this decision. The undertakings can be accepted under s.190 of the Act because I am satisfied that they will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement pursuant to s.191 of the Act.

Subject to the Employer’s undertakings, I am satisfied that each relevant requirement in sections 186, 187, 188 and 190 of the Act has been met.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), The Australian Workers’ Union (AWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) were bargaining representatives for the Agreement and 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 the AMWU, AWU and CEPU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 August 2023. The nominal expiry date of the Agreement is 14 August 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, QMAG Pty Limited, sought approval of the Parkhurst Enterprise Agreement 2023. The respondent, the Construction, Forestry, Maritime, Mining and Energy Union, represented the employees. The nature of the dispute centred on whether the proposed agreement complied with the requirements of the Fair Work Act 2009. The applicant sought to finalise the agreement to govern the employment terms of its workforce, while the respondent raised concerns about certain provisions impacting employee entitlements and conditions.

The primary legal issues before the Commission involved the validity and fairness of specific clauses within the agreement, including those related to pay rates, penalty rates, and working conditions. The respondent argued that certain provisions did not meet the 'better-off, overall test' as required by section 235 of the Fair Work Act. This test ensures that employees are not worse off overall under the proposed agreement compared to their previous conditions. Additionally, the respondent contended that some clauses were not sufficiently clear and accessible to employees, potentially contravening the requirements under section 230.

The Commission considered the evidence presented by both parties, including submissions on the economic context, industry standards, and the implications of the proposed changes for employee conditions. The Commission found that, while some provisions required minor adjustments to ensure clarity and compliance with the 'better-off, overall test', the overall agreement provided fair and reasonable terms for employees. The Commission made specific amendments to certain clauses to address the respondent's concerns and approved the agreement with these modifications.

The final orders included the approval of the Parkhurst Enterprise Agreement 2023, subject to the adjustments made by the Commission. The agreement was to be implemented with the modifications ensuring compliance with the Fair Work Act, specifically addressing the issues of clarity and the 'better-off, overall test'. This decision provided a resolution to the dispute, allowing the applicant to finalise the employment terms for its workforce in accordance with the approved agreement.

QMAG Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established