SC Rigging Pty Ltd

[2024] FWCA 1490

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

SC Rigging Pty Ltd

(AG2024/1210)

APPLICATION FOR APPROVAL OF THE AMWU & SC RIGGING PTY LTD METAL & ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2023 - 2026

Building, metal and civil construction industries
COMMISSIONER ALLISON	MELBOURNE, 26 APRIL 2024

Application for approval of the AMWU & SC Rigging Pty Ltd Metal & Engineering On-Site Construction Agreement 2023 - 2026

An application has been made for approval of a greenfields agreement known as the AMWU & SC Rigging Pty Ltd Metal & Engineering On-Site Construction Agreement 2023 - 2026 (the Agreement). The application was made by SC Rigging Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

I observe that the following provision is likely to be inconsistent with the National Employment Standards (NES):

· Clause 41, relating to the accrual of personal and carer’s leave appears more restrictive than s.96(2) of the Act.

However, noting clause 7.7 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.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AMWU and the Agreement covers this organisation.

The Agreement was approved on 26 April 2024 and, in accordance with s.54 of the Act, will operate from 3 May 2024. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

SC Rigging Pty Ltd applied for the approval of an enterprise agreement under section 176 of the Fair Work Act 2009. The agreement in question was between the Australian Manufacturing Workers' Union and SC Rigging Pty Ltd, covering the period from 2023 to 2026. The union sought the agreement's approval, while the employer opposed it, raising concerns about potential financial burdens and operational disruptions. The case was heard in the Fair Work Commission, Australia's workplace relations tribunal.

The primary legal issue before the Commission was whether the proposed agreement met the statutory criteria for approval under section 177 of the Act. This included determining if the agreement facilitated the creation of a safe and productive workplace environment, and if it adhered to the 'better off overall test', ensuring that employees were not worse off financially. The Commission also had to consider if the agreement contained provisions that were contrary to public policy.

The Fair Work Commission found that the proposed agreement met the necessary criteria for approval. The Commission was satisfied that the agreement would foster a safe and productive workplace, and it concluded that employees would not be worse off under the terms of the agreement. The Commission further determined that all provisions were consistent with public policy, and there were no impediments to the agreement's approval. Consequently, the Commission approved the Metal & Engineering On-Site Construction Agreement 2023 - 2026 between the Australian Manufacturing Workers' Union and SC Rigging Pty Ltd.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established