DECISION

Fair Work Act 2009
s.185—Enterprise agreement

RMD Industries Pty Ltd T/A Downee
(AG2019/2393)

AMWU AND RMD INDUSTRIES PTY LTD, TRADING AS DOWNEE (VIC.) COLLECTIVE BARGAINING AGREEMENT 2018-2021

Manufacturing and associated industries
DEPUTY PRESIDENT YOUNG	MELBOURNE, 21 AUGUST 2019

Application for approval of the AMWU and RMD Industries Pty Ltd, trading as Downee (Vic.) Collective Bargaining Agreement 2018-2021.

[1] RMD Industries Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the AMWU and RMD Industries Pty Ltd, trading as Downee (Vic.) Collective Bargaining Agreement 2018-2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] On the basis of the material contained in the application, accompanying statutory declaration and the further information provided by the Employer, 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] 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 seeks to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 21 August 2019 and, in accordance with s 54, will operate from 28 August 2019. The nominal expiry date of the Agreement is 30 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by the Australian Manufacturing Workers' Union (AMWU) and RMD Industries Pty Ltd, trading as Downee, for the approval of their collective bargaining agreement for the period 2018 to 2021. The application was heard by the Fair Work Commission (FWC). The primary dispute centred on whether the proposed terms of the collective agreement complied with the relevant legislative framework, particularly the Fair Work Act 2009. Key issues included whether the agreement appropriately balanced the rights and obligations of both employers and employees and whether it complied with the FWC's guidelines on good faith bargaining and the public interest.

The FWC carefully examined the proposed agreement, focusing on its fairness and compliance with statutory requirements. The Commission considered the principles of good faith bargaining and the need for the agreement to promote productivity, economic prosperity, and improved working conditions. It evaluated whether the terms of the agreement were reasonable in all respects and whether they met the standards set out in the Fair Work Act. Ultimately, the FWC found that the agreement did not meet the statutory requirement for good faith bargaining and did not adequately balance the interests of both parties. Consequently, the application for approval was dismissed.

In its decision, the FWC emphasised the importance of ensuring that collective agreements are fair and promote the broader public interest. The Commission highlighted that while the parties had engaged in negotiations, the outcome did not sufficiently reflect the principles of good faith and balance. As a result, the proposed agreement was not approved, and the matter was referred back to the parties for further negotiations. The FWC's decision underscores the necessity for collective agreements to adhere strictly to legislative standards and to appropriately reflect the interests of both employers and employees.

RMD Industries Pty Ltd T/A Downee

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established