DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sims Group Australia Holdings Limited T/A Sims Metal Management
(AG2019/4853)

SIMSMETAL PERTH METROPOLITAN COLLECTIVE AGREEMENT 2019

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 9 JANUARY 2020

Application for approval of the Simsmetal Perth Metropolitan Collective Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Simsmetal Perth Metropolitan Collective Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sims Group Australia Holdings Limited T/A Sims Metal Management. The Agreement is a single enterprise agreement.

[2] 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 January 2020. The nominal expiry date of the Agreement is 31 October 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sims Group Australia Holdings Limited, trading as Sims Metal Management, applied for approval of the Simsmetal Perth Metropolitan Collective Agreement 2019 before the Fair Work Commission. The application was brought in light of the proposed changes to the collective agreement, which sought to address various employment terms and conditions for employees in the Perth metropolitan area. The applicant argued that the changes were necessary to ensure operational efficiency and to reflect the current economic conditions. The dispute centred on whether the proposed changes were fair and reasonable, and whether they complied with the relevant provisions of the Fair Work Act 2009.

The legal issues before the court were whether the proposed changes in the Simsmetal Perth Metropolitan Collective Agreement 2019 were consistent with the principles of procedural fairness and whether they complied with the substantive requirements set out in the Fair Work Act. The court needed to assess whether the changes provided fair and reasonable terms for the employees, and whether the process followed to negotiate and finalise the agreement was appropriate and transparent. Additionally, the court had to consider if the changes met the requirements for approval under the Fair Work Act.

The Fair Work Commission found that the proposed changes in the Simsmetal Perth Metropolitan Collective Agreement 2019 were fair and reasonable. The court noted that the applicant had provided comprehensive evidence of the need for the changes, including detailed economic analyses and justifications for each proposed term. The Commission was satisfied that the process followed to negotiate the agreement was transparent and that the employees had been adequately consulted. The court concluded that the changes did not undermine the rights of the employees but instead provided them with fair terms that balanced the interests of both the employer and the employees. Consequently, the application for approval of the agreement was successful.

Sims Group Australia Holdings Limited T/A Sims Metal Management

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established