DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SSX Services Pty Limited T/A ARC/The Australian Reinforcing Company
(AG2018/6377)

ARC/THE AUSTRALIAN REINFORCING COMPANY (NEWCASTLE) ENTERPRISE AGREEMENT 2018-2020

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 4 MARCH 2019

Application for approval of the ARC/The Australian Reinforcing Company (Newcastle) Enterprise Agreement 2018-2020.

[1] An application has been made for approval of an enterprise agreement known as the ARC/The Australian Reinforcing Company (Newcastle) Enterprise Agreement 2018-2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SSX Services Pty Limited T/A ARC/The Australian Reinforcing Company. The Agreement is a single enterprise agreement.

[2] 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.

[3] I note that Clauses 14.3 and 20 are inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 6 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[4] 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.

[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 11 March 2019. The nominal expiry date of the Agreement is 31 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, SSX Services Pty Limited, trading as ARC/The Australian Reinforcing Company, sought approval of an enterprise agreement from the Fair Work Commission (FWC). The proposed agreement, titled the ARC/The Australian Reinforcing Company (Newcastle) Enterprise Agreement 2018-2020, was intended to govern the terms and conditions of employment for its employees in the Newcastle region. The FWC was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009, including whether it facilitated the creation of a safety net of minimum entitlements, promoted high levels of enterprise bargaining, and provided for genuine agreement. The applicant argued that the agreement was fairly negotiated and met all legislative requirements, while no other party contested the application.

The FWC was required to examine the process through which the agreement was negotiated and whether it was genuinely agreed upon by both parties. This included assessing the fairness of the process and the extent to which the agreement provided for a safety net of minimum entitlements, promoted enterprise bargaining, and was made in good faith. The FWC also needed to ensure that the agreement did not undermine the protection of workers’ rights and that it complied with the relevant provisions of the Fair Work Act.

The FWC found that the application for approval was made in accordance with the Fair Work Act, and the agreement was fairly negotiated and genuinely agreed upon by both parties. The FWC considered the submissions and evidence provided, and was satisfied that the agreement met all the necessary criteria. The FWC noted that the agreement provided for a safety net of minimum entitlements, promoted enterprise bargaining, and was made in good faith. The FWC also found that the agreement did not undermine the protection of workers’ rights and complied with the relevant provisions of the Fair Work Act. Therefore, the FWC approved the ARC/The Australian Reinforcing Company (Newcastle) Enterprise Agreement 2018-2020.

The FWC approved the ARC/The Australian Reinforcing Company (Newcastle) Enterprise Agreement 2018-2020, effective from the date of the decision. The applicant was directed to take all necessary steps to give effect to the approved agreement and to provide a copy of the decision to all affected employees. The FWC also directed that a copy of the decision be registered with the Registrar of the Fair Work Commission and that the applicant provide a copy of the decision to the Fair Work Ombudsman. This decision sets a precedent for similar applications and provides clarity on the requirements for approving enterprise agreements under the Fair Work Act.

SSX Services Pty Limited T/A ARC/The Australian Reinforcing Company

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established