Rheinmetall Defence Australia Pty Ltd

[2024] FWCA 1019

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Rheinmetall Defence Australia Pty Ltd

(AG2024/715)

RHEINMETALL DEFENCE AUSTRALIA ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT ROBERTS	SYDNEY, 21 MARCH 2024

Application for approval of the Rheinmetall Defence Australia Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Rheinmetall Defence Australia Enterprise Agreement 2023 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rheinmetall Defence Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

I note that the employees who were entitled to vote on the Agreement were provided with a corrected copy of the proposed agreement 6 days before the start of the voting process. I note further that the relevant correction related to a minor typographical error in the pay tables in schedule 1 of the proposed agreement, that the incorrect rate was lower than the corrected rate and that employees would not have been prejudiced by the correction or the reduction in the period available to them to consider the terms of the proposed agreement. Further, the “Automotive, Food, Metals, Engineering, Printing and Kindred Union” known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the proposed agreement, agreed that the period was a reasonable time period in accordance with clause 6(b) of the Statement of Principles. I am satisfied that each of the requirements of ss186, 187 and 188 as is relevant to this application for approval has been met.

To the extent that clause 35 of the Agreement does not include all of the entitlements to compassionate leave provided for in the National Employment Standards (NES), I note that Clause 3.1 of the Agreement provides that the Agreement incorporates the NES and that to extent of any inconsistency between the Agreement and the NES, the NES will prevail.

The AMWU lodged a Form F18 statutory declaration giving 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 the Agreement covers the AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 28 March 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Rheinmetall Defence Australia Pty Ltd, a company engaged in the manufacture of defence equipment, applied for approval of the Rheinmetall Defence Australia Enterprise Agreement 2023, which was intended to govern the employment conditions of its workers. The Australian Industrial Relations Commission (AIRC) was tasked with determining whether the agreement met the necessary criteria under the Fair Work Act 2009 for approval. The application was made by the employer, and the union representing the workers did not oppose the agreement. However, the Commissioner needed to ensure that the agreement was fair and appropriate, considering the interests of the employees and the need for a balanced and equitable agreement.

The central legal issues before the Commissioner were whether the agreement met the requirements of the Fair Work Act, particularly sections that mandate agreements be free from coercion and be genuinely negotiated. The Commissioner needed to confirm that the agreement was not only free from any improper influence or pressure but also genuinely reflected a bargain between the parties. Additionally, the Commissioner had to ensure that the agreement provided for fair and reasonable terms and conditions, including pay, hours of work, and other employment conditions that were not detrimental to the employees.

In rendering the decision, the Commissioner reviewed the process through which the agreement was negotiated and the content of the agreement itself. The Commissioner was satisfied that the agreement was the product of genuine negotiations and did not contain any terms that were unfair or contrary to the public interest. The Commissioner found that the agreement was fair and appropriate, providing for reasonable terms and conditions of employment while maintaining a balanced relationship between the employer and the employees. Based on these findings, the Commissioner approved the agreement under the Fair Work Act.

The final orders of the Commissioner were to approve the Rheinmetall Defence Australia Enterprise Agreement 2023, thereby giving it legal effect as a registered agreement. This approval means that the terms and conditions outlined in the agreement will govern the employment relationship between the employer and its employees, subject to the continued applicability of the Fair Work Act and any other relevant laws.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established