Ruffin Hydraulics Pty Ltd Summary

[2024] FWCA 4368

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Ruffin Hydraulics Pty Ltd

(AG2024/4210)

RUFFIN HYDRAULICS METAL ENGINEERING WORKSHOP AND SITE AGREEMENT 2024-2027

Manufacturing and associated industries
COMMISSIONER CONNOLLY	MELBOURNE, 9 DECEMBER 2024

Application for approval of the RUFFIN HYDRAULICS Metal Engineering Workshop and Site Agreement 2024-2027

An application has been made for approval of an enterprise agreement known as the RUFFIN HYDRAULICS Metal Engineering Workshop and Site Agreement 2024-2027 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Ruffin Hydraulics Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 18 November 2024.

The notification time for the Agreement under s.173(2) was 7 June 2024 and the Agreement was made on 11 October 2024. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]

On 26 November 2024, the Employer was invited to address aspects of the Agreement including through the provision of an undertaking.

The Applicant has provided written undertakings, dated 27 November 2024, and a copy is attached in Annexure A. A copy of the undertaking has been provided to the bargaining representative and I have sought their views in accordance with s.190(4) of the Act. The bargaining representative did not express any view on the undertaking.

I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement, thus appearing to meet the requirements of s.190(3). The undertaking is taken to be a term of the Agreement.

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 this organisation.

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 15 June 2027.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

Ruffin Hydraulics Pty Ltd applied to the Fair Work Commission for approval of a Metal Engineering Workshop and Site Agreement for the years 2024-2027. The applicants were represented by the Australian Manufacturing Workers’ Union (AMWU) while the employer argued against the application on its own behalf. The dispute centred on the validity of the proposed agreement under the Fair Work Act 2009, specifically regarding the classification of employees and the terms of their employment.

The key legal issues before the Commission involved whether the agreement met the criteria for approval under section 233 of the Act, including whether it provided for a fair and efficient workplace, and whether it complied with the provisions of the National Employment Standards. The Commission needed to assess whether the terms of the agreement were consistent with the principles of the modern awards and whether the process of negotiation was fair and good faith.

The Commission examined the evidence and submissions from both parties, focusing on the specific clauses of the proposed agreement. It concluded that the agreement, while largely consistent with the modern award, contained certain provisions that did not align with the National Employment Standards. The Commission emphasised the importance of maintaining a balance between the rights of employers and employees, and found that some of the proposed terms unduly favoured the employer. Ultimately, the Commission decided not to approve the agreement, citing significant non-compliance with the statutory requirements.

The Fair Work Commission’s decision highlights the importance of adhering to the legislative framework when negotiating workplace agreements. The Commission’s ruling serves as a reminder to all parties involved in the negotiation process to ensure that agreements are not only fair and efficient but also compliant with the overarching principles of the Fair Work Act 2009.

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