DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

SMR Automotive Australia Pty Ltd
(AG2021/4262)

SMR AUTOMOTIVE AUSTRALIA PTY LTD, AMU / AMWU ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER PLATT	ADELAIDE, 9 APRIL 2021

Application for approval of the SMR Automotive Australia Pty Ltd, AWU / AMWU Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the SMR Automotive Australia Pty Ltd, AWU / AMWU Enterprise Agreement 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by SMR Automotive Australia Pty Ltd (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 29 March 2021.

[3] The Applicant has submitted an undertaking in the required form dated 31 March 2021. The undertaking deals with the following topics:

• A correction of a typographical error in clause 15.5.

• The number of occasions in which an employee can take annual leave through clause 38.7 will not be limited.

• Deductions taken in respect of annual leave in advance and failure of the employee to provide adequate notice of termination will be limited to wages due to the Employee on termination.

• The definition of ‘immediate family’ will be consistent with the National Employment Standards (NES).

• Bereavement leave has been extended to members of the employee’s household.

• Redundancy pay will not be less than that provide by s.119 of the Act.

[4] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union”, known as the Australian Manufacturing Workers’ Union (AMWU), approved the undertaking. The other bargaining representatives did not express any view on the undertaking.

[5] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[6] As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

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

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 August 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

SMR Automotive Australia Pty Ltd applied to the Fair Work Commission for approval of the SMR Automotive Australia Pty Ltd, AWU / AMWU Enterprise Agreement 2020. The application arose from negotiations between the employer and the union, which had resulted in an agreement that was to be put to the employees for approval. The dispute centred on the terms of the agreement and whether it complied with the relevant statutory framework, specifically the Fair Work Act 2009.

The central legal issues before the Commission were whether the agreement met the criteria for approval under the Fair Work Act and whether it complied with the relevant provisions of the Act. This included assessing whether the agreement provided for the fair and reasonable terms and conditions of employment, and whether it had been negotiated in good faith. Additionally, the Commission needed to determine whether the agreement adequately addressed the interests of both the employer and the employees.

The Commission found that the agreement was fair and reasonable, having been negotiated in good faith. It satisfied all the statutory requirements for approval and met the necessary standards under the Fair Work Act. The terms were deemed to provide appropriate protections for employees while also allowing the employer to maintain operational flexibility. The Commission concluded that the agreement was in the best interests of both parties and approved it accordingly.

The Fair Work Commission approved the SMR Automotive Australia Pty Ltd, AWU / AMWU Enterprise Agreement 2020, finding it to be fair and reasonable and in compliance with the Fair Work Act. The approval was based on the evidence presented that the agreement had been negotiated in good faith and met all statutory requirements. This decision ensures that the terms and conditions of employment are appropriately balanced between the employer and the employees.

SMR Automotive Australia Pty Ltd

DECISION

CaseChat Overview and Summary

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Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established