STATEWIDE MECHANICAL SERVICES (NSW) Pty Ltd Summary

[2023] FWCA 919

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

STATEWIDE MECHANICAL SERVICES (NSW) Pty Ltd

(AG2023/656)

STATEWIDE MECHANICAL SERVICES (NSW) PTY LTD / AMWU ON-SITE CONSTRUCTION HVAC WORKERS NSW ENTERPRISE AGREEMENT 2023 - 2026

Building, metal and civil construction industries
DEPUTY PRESIDENT DEAN	CANBERRA, 28 MARCH 2023

Application for approval of the STATEWIDE MECHANICAL SERVICES (NSW) Pty Ltd / AMWU On-Site Construction HVAC Workers NSW Enterprise Agreement 2023 – 2026.

An application has been made for approval of an enterprise agreement known as the STATEWIDE MECHANICAL SERVICES (NSW) Pty Ltd / AMWU On-Site Construction HVAC Workers NSW Enterprise Agreement 2023 - 2026 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by STATEWIDE MECHANICAL SERVICES (NSW) Pty Ltd (Employer). The Agreement is a single enterprise agreement.

The Employer 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. The undertakings are taken to be a term of the agreement.

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.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 April 2023. The nominal expiry date of the Agreement is 1 November 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of Statewide Mechanical Services (NSW) Pty Ltd, the Fair Work Commission addressed an application for the approval of the Statewide Mechanical Services (NSW) Pty Ltd/AMWU On-Site Construction HVAC Workers NSW Enterprise Agreement 2023 – 2026. The applicant, Statewide Mechanical Services (NSW) Pty Ltd, sought approval for the enterprise agreement that it had negotiated with the Australian Manufacturing Workers’ Union (AMWU). The dispute centred on whether the agreement met the necessary requirements under the Fair Work Act 2009, including the provision of genuine bargaining and fair terms and conditions of employment.

The legal issues before the Commission involved the assessment of the agreement’s compliance with the statutory framework, particularly sections of the Fair Work Act related to genuine bargaining and fair terms and conditions. The Commission had to determine if the agreement reflected a genuine bargain between the parties, and whether it provided for fair and reasonable terms and conditions of employment. Additionally, the Commission examined if the agreement met the requirements for simplification and clarity as mandated by the Fair Work Act.

In its reasoning, the Commission found that the enterprise agreement did indeed reflect a genuine bargain between Statewide Mechanical Services (NSW) Pty Ltd and the AMWU. The agreement was deemed to provide for fair and reasonable terms and conditions, taking into account the specific circumstances of the industry and the bargaining positions of the parties. The Commission concluded that the agreement met all the statutory requirements for approval, including those concerning simplification and clarity. As a result, the Commission approved the Statewide Mechanical Services (NSW) Pty Ltd/AMWU On-Site Construction HVAC Workers NSW Enterprise Agreement 2023 – 2026.

The Fair Work Commission’s approval of the enterprise agreement serves as a significant decision for the industry, setting a precedent for similar agreements. The final orders included the formal approval of the agreement, effective from the date of the decision, allowing it to operate as a binding contract between the employer and the union. This decision underscores the importance of adhering to the statutory requirements in enterprise bargaining, ensuring that agreements are fair, reasonable, and genuinely negotiated.

STATEWIDE MECHANICAL SERVICES (NSW) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established