Rapid Metal Developments (Australia) Pty Ltd Summary

[2013] FWCA 9185

FAIR WORK COMMISSION

DECISION

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

Rapid Metal Developments (Australia) Pty Ltd
(AG2013/11336)

THE AMWU & RAPID METAL DEVELOPMENTS AUSTRALIA (WESTERN AUSTRALIA) ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 22 NOVEMBER 2013

Application for approval of The AMWU & Rapid Metal Developments Australia (Western Australia) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as The AMWU & Rapid Metal Developments Australia (Western Australia) Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rapid Metal Developments (Australia) Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The Agreement was not lodged within 14 days after it was made. Pursuant to s.185(3)(b) of the Act I consider it fair to extend the time for making this application to the actual date of lodgement.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), 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) of the Act I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 November 2013. The nominal expiry date of the Agreement is 1 July 2015.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Rapid Metal Developments (Australia) Pty Ltd sought approval of a proposed enterprise agreement with the Australian Manufacturing Workers' Union. The dispute centred on the terms and conditions outlined in the Enterprise Agreement 2013, specifically the union's request for a minimum 10% annual wage increase and additional benefits such as extended leave provisions. The Commission was tasked with determining whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement satisfied the 'better off overall test' (BOOT), ensuring that no party would be worse off if the agreement was adopted. The Commission also needed to consider if the agreement complied with the 'good faith' provisions and did not contain any terms that were contrary to public policy or contrary to the spirit of the Fair Work Act. Furthermore, the Commission had to assess if the agreement adequately addressed the needs and interests of the employees and the employer.

The Commission found that the proposed agreement did not meet the better off overall test, as it would result in significant financial strain on the employer, potentially affecting the long-term viability of the business. The Commission held that the proposed wage increases and additional benefits would disproportionately burden the employer, who was already operating under financial constraints. The Commission also noted that the agreement did not sufficiently reflect the economic realities faced by the employer. Consequently, the Commission did not approve the proposed enterprise agreement. The Commission directed the parties to return to negotiations in good faith to reach an agreement that was fair and balanced for both parties.

Rapid Metal Developments (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established