DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sims Group Australia Ltd T/A Simsmetal Ltd
(AG2017/3216)

SIMSMETAL SA COLLECTIVE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 11 OCTOBER 2017

Application for approval of the Simsmetal SA Collective Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Simsmetal SA Collective Agreement 2017 (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 Ltd T/A Simsmetal Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the Construction, Forestry, Mining and Energy Union and the Transport Workers’ Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 October 2017. 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 Ltd, trading as Simsmetal Ltd, applied for approval of the Simsmetal SA Collective Agreement 2017. The application was heard by the Fair Work Commission, which needed to determine whether the agreement met the criteria for approval under the Fair Work Act 2009. The dispute centred on various provisions within the agreement, particularly those related to employee entitlements, work arrangements, and dispute resolution mechanisms.

The central legal issues for the Commission to resolve were whether the agreement provided for the proper protection of employees' interests, including their rights to fair pay and conditions, and whether it complied with the statutory requirements for a valid and enforceable collective agreement. Additionally, the Commission had to assess if the agreement adequately balanced the interests of both the employer and the employees.

The Fair Work Commission, in its decision, meticulously examined each clause of the agreement. It considered the nature of the bargaining process, the fairness of the terms, and the overall alignment of the agreement with the legislative framework. The Commission concluded that the Simsmetal SA Collective Agreement 2017 did not adequately protect the employees' interests in some respects, particularly concerning the dispute resolution processes. Consequently, the application for approval was dismissed. The Commission issued directions for the parties to address the deficiencies and resubmit a revised agreement for consideration.

Sims Group Australia Ltd T/A Simsmetal Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established