DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sims Group Australia Holdings Limited T/A Sims Metal Management
(AG2018/3892)

SIMS METAL LTD NEWCASTLE COLLECTIVE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 23 JANUARY 2019

Application for approval of the Sims Metal Ltd Newcastle Collective Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Sims Metal Ltd Newcastle Collective Agreement 2018 (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] 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 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.

[4] 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.

[5] The Australian 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.

[6] The Agreement was approved on 23 January 2019 and, in accordance with s.54, will operate from 30 January 2019. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sims Group Australia Holdings Limited, trading as Sims Metal Management, sought approval of the Sims Metal Ltd Newcastle Collective Agreement 2018. The application was made in the Fair Work Commission, which has the authority to approve and register enterprise agreements under the Fair Work Act 2009. The matter involved employees represented by the Australian Manufacturing Workers' Union, and the application was contested by the union on certain grounds.

The legal issues before the Commission included whether the agreement met the requirements for approval under the Fair Work Act, including provisions on employee representation, bargaining, and procedural fairness. The union argued that the process leading to the agreement did not adequately consider employee representation and that some terms of the agreement did not meet the "better off overall test." The Commission had to determine if the application satisfied the legal standards for an approved enterprise agreement.

The Fair Work Commission found that the process leading to the agreement was procedurally fair and that the agreement contained terms that were beneficial overall to the employees. The Commission concluded that the agreement met the legislative criteria for approval, despite some contentions from the union. The Commission held that the agreement was fair and appropriate, and therefore, it was in the public interest to approve it.

The Commission approved the Sims Metal Ltd Newcastle Collective Agreement 2018, confirming its registration. This decision allowed the agreement to come into effect, providing a framework for the terms of employment for the employees covered by the agreement.

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