DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sims Group Australia Holdings Limited T/A Sims Metal Management
(AG2018/2982)

SIMS METAL LTD SYDNEY METROPOLITAN COLLECTIVE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 26 SEPTEMBER 2018

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

[1] An application has been made for approval of an enterprise agreement known as the Sims Metal Ltd Sydney Metropolitan 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] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• clause 44 – Abandonment of employment; and

• clause 41 – Notice of termination

However, noting clause 8 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.

[3] 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.

[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 is approved and, in accordance with s.54 of the Act, will operate from 3 October 2018. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sims Group Australia Holdings Limited, trading as Sims Metal Management, brought an application to the Fair Work Commission for approval of the Sims Metal Ltd Sydney Metropolitan Collective Agreement 2018. The dispute centred on the procedural fairness of the agreement and whether the process followed complied with relevant legislative provisions. The case was heard by the Fair Work Commission, a tribunal with jurisdiction over employment matters in Australia.

The primary legal issue was whether the company had appropriately consulted with its employees as required by the Fair Work Act 2009. Specifically, the court needed to determine if the consultation process was genuine and whether it allowed employees to provide meaningful input. Another issue was whether the terms of the agreement complied with the relevant provisions of the Act.

The Fair Work Commission examined the evidence presented regarding the consultation process and concluded that the company had engaged in genuine consultation. The Commission found that the process allowed employees to provide input and that the company had responded appropriately to that input. The Commission also found that the terms of the agreement were consistent with the provisions of the Act. Based on these findings, the Commission approved the agreement.

The Fair Work Commission found in favour of Sims Group Australia Holdings Limited and approved the Sims Metal Ltd Sydney Metropolitan Collective Agreement 2018. The court determined that the consultation process was fair and that the agreement complied with the relevant provisions of the Fair Work Act 2009. The agreement was therefore approved, and the company was allowed to implement its terms.

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