DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Smith Plant (Lismore) Pty Ltd
(AG2016/4677)

SMITH PLANT (LISMORE) PTY LTD ENTERPRISE AGREEMENT 2016-2020

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 25 AUGUST 2016

Application for approval of the Smith Plant (Lismore) Pty Ltd Enterprise Agreement 2016-2020.

[1] An application has been made for approval of an enterprise agreement known as the Smith Plant (Lismore) Pty Ltd Enterprise Agreement 2016-2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Smith Plant (Lismore) Pty 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 September 2016. The nominal expiry date of the Agreement is 24 August 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Smith Plant (Lismore) Pty Ltd is a company engaged in the manufacture and distribution of industrial machinery. The company's employees were represented by the Australian Manufacturing Workers' Union. In 2016, the parties entered into an enterprise agreement, which was due for renewal in 2020. The company sought approval of the proposed new agreement, which was contested by the union. The application for approval was brought before the Fair Work Commission, which was required to decide whether the proposed agreement met the statutory criteria for approval.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the requirements of section 233 of the Fair Work Act 2009. Under this provision, an enterprise agreement is only capable of being approved if it has been fairly negotiated, and if it contains certain mandatory terms and conditions. The Commission had to consider whether the agreement met these criteria, and if it was in the best interests of the employees. The union argued that the agreement did not fairly reflect the bargaining positions of the parties and did not provide adequate protections for employees.

The Commission found that the proposed agreement had been fairly negotiated, and contained all the mandatory terms and conditions required by the Act. The Commission considered the evidence of the parties and the submissions made on their behalf, and concluded that the agreement was in the best interests of the employees. The Commission noted that the agreement provided for a range of protections for employees, including provisions for minimum rates of pay, leave entitlements, and dispute resolution mechanisms. The Commission also found that the agreement reflected the bargaining positions of the parties, and that the union had not demonstrated that the agreement was unfair in any respect.

In light of the above findings, the Commission approved the proposed enterprise agreement. The union was given leave to appeal the decision to the Federal Court, but ultimately did not pursue the matter further. The agreement is now in force and binding on the parties, and provides a framework for the regulation of industrial relations in the company for the next four years. The outcome of the case provides a useful guide for employers and unions engaged in enterprise bargaining, and highlights the importance of ensuring that agreements are fairly negotiated and comply with the statutory requirements.

Smith Plant (Lismore) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established