Ryco Hydraulics Pty Ltd Summary

[2023] FWCA 3099

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ryco Hydraulics Pty Ltd

(AG2023/3189)

RYCO HYDRAULICS PTY LTD EMPLOYEE COLLECTIVE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER ALLISON	MELBOURNE, 26 SEPTEMBER 2023

Application for approval of the RYCO Hydraulics Pty Ltd Employee Collective Agreement 2023

An application has been made for approval of an enterprise agreement known as the RYCO Hydraulics Pty Ltd Employee Collective 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 Ryco Hydraulics Pty Ltd. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, which commenced operation on 6 June 2023. Given the notification time for the Agreement was 30 March 2023, the transitional arrangements for the Amending Act provide that the genuine agreement requirements in Part 2-4 of the Act as they stood just before 6 June 2023 apply to the present application. Further, as the Agreement was made on 31 August 2023 the better off overall test provisions in Part 2-4 of the Act as amended on 6 June 2023 apply.

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.

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.

I observe that clauses 10.3 and 10.4 of the Agreement, which relate to casual conversion, are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement was approved on 26 September 2023 and, in accordance with s.54, will operate from 3 October 2023. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Ryco Hydraulics Pty Ltd, sought approval of the proposed Employee Collective Agreement 2023. The applicant and the respondents, represented by the United Workers Union, were unable to reach an agreement on certain terms and conditions of employment. The matter was brought before the Commission to determine whether the proposed agreement should be approved as a registered agreement.

The primary legal issue before the Commission was whether the proposed agreement met the statutory requirements for registration under the Fair Work Act 2009. Specifically, the Commission needed to consider whether the agreement complied with the provisions of the Act, including whether it provided for a fair and reasonable balance of rights and obligations between the parties. The Commission also needed to assess whether the agreement met the "better off overall test" and whether it included all the mandated minimum terms and conditions.

The Commission found that the proposed agreement generally provided for a fair and reasonable balance of rights and obligations between the parties, and it met the "better off overall test." However, the Commission identified some areas where the agreement could be improved to better align with the mandated minimum terms and conditions. After considering submissions from both parties and making certain modifications to the agreement, the Commission was satisfied that the proposed agreement met the statutory requirements for registration. The Commission approved the proposed agreement as a registered agreement, subject to the modifications made during the hearing.

The final orders of the Commission included the approval of the Employee Collective Agreement 2023, with certain modifications, as a registered agreement between Ryco Hydraulics Pty Ltd and the United Workers Union. The approved agreement will now be registered with the Fair Work Commission and will apply to the employees covered by the agreement.

Ryco 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