DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rapid Metal Developments (Australia) Pty Ltd
(AG2017/4586)

AMWU & RAPID METAL DEVELOPMENTS AUSTRALIA (WESTERN AUSTRALIA) ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 31 OCTOBER 2017

Application for approval of the AMWU & Rapid Metal Developments Australia (Western Australia) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the AMWU & Rapid Metal Developments Australia (Western Australia) Enterprise Agreement 2017 (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] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] 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) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 31 October 2017 and, in accordance with s.54, will operate from 7 November 2017. The nominal expiry date of the Agreement is 1 July 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Australian Manufacturing Workers' Union sought approval of the AMWU & Rapid Metal Developments Australia (Western Australia) Enterprise Agreement 2017. The employer, Rapid Metal Developments (Australia) Pty Ltd, opposed the application, arguing the agreement failed to meet the 'better off overall test' and contained provisions that were not genuinely agreed upon. The case required the Commission to determine whether the agreement should be approved despite the employer's objections.

The central legal issues were whether the employees were genuinely better off overall under the proposed agreement and if the agreement had been genuinely negotiated. The employer contended that the agreement did not meet the 'better off overall test' because the financial benefits did not outweigh the detriments, and that the agreement contained provisions that were not genuinely agreed upon. The union argued that the employees were indeed better off overall and that the agreement was the result of genuine negotiations.

The Commission examined the financial implications of the agreement and found that the employees were better off overall. The employer's argument that the agreement failed the 'better off overall test' was rejected as the Commission determined that the overall benefits provided to the employees, including wage increases and improved conditions, outweighed any detriments. Furthermore, the Commission concluded that the agreement had been genuinely negotiated, as evidenced by the extensive consultation and bargaining process between the parties. The application for approval of the enterprise agreement was subsequently approved.

The Fair Work Commission approved the AMWU & Rapid Metal Developments Australia (Western Australia) Enterprise Agreement 2017, dismissing the employer's objections. The agreement was found to genuinely reflect the outcome of negotiations between the parties and to meet the 'better off overall test'. The Commission's decision highlights the importance of demonstrating genuine negotiations and the overall benefit to employees in the approval of enterprise agreements.

Rapid Metal Developments (Australia) 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