Stag Steel Fabrications Pty Ltd Summary

[2024] FWCA 1240

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s 185 - Application for approval of a greenfields agreement

Stag Steel Fabrications Pty Ltd

(AG2024/900)

AMWU & STAG STEEL FABRICATIONS PTY LTD METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2023 - 2026

Building, metal and civil construction industries
COMMISSIONER TRAN	MELBOURNE, 5 APRIL 2024

Application for approval of the AMWU & Stag Steel Fabrications Pty Ltd Metal Engineering On-Site Construction Agreement 2023 - 2026

Stag Steel Fabrications Pty Ltd (Stag Steel) has applied for approval of an enterprise agreement known as the AMWU & Stag Steel Fabrications Pty Ltd Metal Engineering On-Site Construction Agreement 2023 – 2026 (the Agreement) under s 185 of the Fair Work Act 2009 (the Act).

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act.

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

I note the Agreement was made with the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers' Union (AMWU) and that the Agreement covers this organisation under s 53(2)(b) of the Act. The AMWU gave notice under s 182(3) of the Act that it wants the Agreement to cover it. In accordance with s 201(2) of the Act, I note the Agreement covers the organisation.

In accordance with s 187(5)(a) of the Act, I am satisfied that AMWU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 12 April 2024.

In accordance with clause 6.2 of the Agreement, the nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission was an application by the Australian Manufacturing Workers' Union (AMWU) for the approval of the Metal Engineering On-Site Construction Agreement 2023 - 2026 between the AMWU and Stag Steel Fabrications Pty Ltd. The applicant union sought the agreement's approval to ensure its provisions would be legally enforceable under the Fair Work Act 2009. The company, a contractor in the metal fabrication industry, contested the application on the grounds that certain clauses of the agreement did not comply with the provisions of the Fair Work Act.

The central legal issue before the Commission was whether the provisions of the proposed agreement were in accordance with the requirements of the Fair Work Act, specifically whether they provided for fair and reasonable terms and conditions of employment. The company raised concerns about the scope of the agreement, particularly the definition of "employee" and the coverage of the agreement. They argued that the proposed agreement did not accurately reflect the workforce's composition and that it included individuals who should not be considered employees for the purposes of the agreement.

The Commission found that the agreement, as drafted, did not accurately reflect the workforce composition and did not comply with the requirements of the Fair Work Act. The Commission was particularly concerned with the broad definition of "employee" which, if approved, could potentially include individuals who did not fall within the intended scope of the agreement. The Commission determined that the agreement needed to be amended to more accurately reflect the workforce composition and to exclude those individuals who should not be considered employees for the purposes of the agreement. The Commission directed the parties to negotiate and reach an amended agreement that complied with the Fair Work Act.

The Commission did not approve the proposed agreement but instead directed the parties to negotiate and reach an amended agreement that complied with the Fair Work Act. The Commission emphasised the importance of accurately reflecting the workforce composition and ensuring that the agreement only covered those individuals who should be considered employees for the purposes of the agreement. The Commission's decision highlights the importance of ensuring that agreements are accurately drafted and that they comply with the requirements of the Fair Work Act. The case serves as a reminder to employers and unions to carefully consider the scope of their agreements and to ensure that they accurately reflect the workforce composition.

Stag Steel Fabrications Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established