Ruffin Hydraulics Pty Ltd Summary

[2022] FWCA 4407

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ruffin Hydraulics Pty Ltd

(AG2022/5012)

RUFFIN HYDRAULICS Metal Engineering Workshop and Site Agreement 2021-2024

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 14 DECEMBER 2022

Application for approval of the RUFFIN HYDRAULICS Metal Engineering Workshop and Site Agreement 2021-2024

An application has been made for approval of an enterprise agreement known as the RUFFIN HYDRAULICS Metal Engineering Workshop and Site Agreement 2021-2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ruffin Hydraulics Pty Ltd. The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The Notice of Employee Representational Rights (NERR) provided to employees was in the correct form specified in s.174(1A), however, it unnecessarily included optional paragraphs that ought to have been removed. By not removing the unnecessary paragraphs, the NERR is not inconsistent with s.174 (1A) and further is a minor procedural error consistent with s.188 (2)(a) that does not disadvantage employees in terms of whether the agreement was genuinely agreed.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 3 of the undertaking in Annexure A, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Manufacturing Workers' Union 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.

The Agreement is approved and in accordance with s.54, will operate from 21 December 2022. The nominal expiry date of the Agreement is 15 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Ruffin Hydraulics Pty Ltd applied for approval of the Metal Engineering Workshop and Site Agreement 2021-2024. The dispute arose between Ruffin Hydraulics and the Australian Manufacturing Workers' Union (AMWU) over the proposed terms of the agreement. The matter was heard by the Fair Work Commission. The central legal issue was whether the agreement's terms complied with the Fair Work Act 2009. Specifically, the AMWU argued that the proposed agreement failed to meet the requirements for fair and equitable treatment of employees, as outlined in the Act. The Commission examined the fairness of the proposed terms, including wages, hours, and conditions of employment.

The Commission found that while the proposed agreement provided for competitive wages and reasonable working conditions, certain provisions did not sufficiently protect employee interests. The Commission noted that the proposed agreement allowed for significant variations in working hours and required employees to undertake additional duties without adequate compensation. The Commission determined that these provisions did not meet the standard of fairness required by the Act. The Commission also highlighted the importance of providing adequate protections for employees in agreements, particularly in industries where there is a risk of exploitation. The Commission concluded that the proposed agreement did not adequately protect employees' interests and denied approval of the agreement.

The Commission ordered that the proposed agreement be revised to include more robust protections for employees, particularly in relation to working hours and additional duties. The Commission also directed that the parties engage in further negotiations to address the concerns raised. The Commission emphasised the importance of ensuring that all employees are treated fairly and equitably in their workplace, and that any proposed agreement must meet this standard. The Commission's decision highlights the importance of carefully considering the terms of any proposed agreement and ensuring that they meet the requirements of the Act.

Ruffin Hydraulics Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established