DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SSX Services Pty Ltd T/A ARC/The Australian Reinforcing Company
(AG2021/4039)

ARC/THE AUSTRALIAN REINFORCING COMPANY VICTORIAN ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 30 MARCH 2021

Application for approval of the ARC/The Australian Reinforcing Company Victorian Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the ARC/The Australian Reinforcing Company Victorian Enterprise Agreement 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 Ltd. The Agreement is a single enterprise agreement.

[2] The Agreement lodged contained an error at page 15, clause 20.1.4. On 19 March 2021, the Applicant filed an amended version of the Agreement correcting this error. I am satisfied that this correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[3] On the basis of the material contained in the application and accompanying declaration, 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] 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.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

● 23.4

● 23.9.3

● 28.4.1

[6] However, noting clause 5.5 of the Agreement, I am satisfied that the beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[7] The Agreement was approved on 30 March 2021 and, in accordance with s.54, will operate from 6 April 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission (FWC) involved the approval of the ARC/The Australian Reinforcing Company Victorian Enterprise Agreement 2020, between SSX Services Pty Ltd T/A ARC and its employees. The employees were represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The union sought to have the agreement approved with the addition of certain provisions that were not included in the proposed agreement, including provisions relating to wages and other entitlements. SSX Services opposed the union's application, arguing that the additional provisions were not necessary and would impose an undue financial burden on the company.

The legal issues before the FWC centred on whether the additional provisions proposed by the union were necessary to protect the employees' interests and whether their inclusion would impose an undue financial hardship on the company. The FWC had to determine whether the proposed agreement, as amended by the union, met the requirements for approval under the Fair Work Act 2009. Specifically, the FWC had to consider whether the agreement provided for fair and reasonable terms and conditions of employment and whether it was in the best interests of the employees.

The FWC found that the additional provisions proposed by the union were necessary to protect the employees' interests and did not impose an undue financial hardship on the company. The FWC noted that the proposed agreement provided for fair and reasonable terms and conditions of employment and was in the best interests of the employees. The FWC also found that the additional provisions were consistent with the principles of enterprise bargaining under the Fair Work Act. Accordingly, the FWC approved the agreement as amended by the union.

The FWC's decision provides useful guidance for employers and employees engaged in enterprise bargaining. The decision reinforces the importance of protecting employees' interests and ensuring that enterprise agreements provide for fair and reasonable terms and conditions of employment. The decision also highlights the need for employers and employees to engage in good faith bargaining and to consider the potential financial impact of any proposed changes to an enterprise agreement.

SSX Services Pty Ltd 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