Steel Frame Solutions Pty Ltd

[2013] FWCA 8019

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Steel Frame Solutions Pty Ltd
(AG2013/10687)

STEEL FRAME SOLUTIONS PTY LTD (DETAILING & ESTIMATING) ENTERPRISE AGREEMENT 2013-2016

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 14 OCTOBER 2013

Application for approval of the Steel Frame Solutions Pty Ltd (Detailing & Estimating) Enterprise Agreement 2013-2016.

[1] An application has been made for approval of an enterprise agreement known as the Steel Frame Solutions Pty Ltd (Detailing & Estimating) Enterprise Agreement 2013-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Steel Frame Solutions Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] An undertaking has been given in relation to clause 20 of the Agreement and this undertaking has become a term of the Agreement in accordance with s.191(1) of the Act and is appended at Appendix A.

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 21 October. The nominal expiry date of the Agreement is 20 October 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

APPENDIX A

CaseChat Overview and Summary

The Fair Work Commission (FWC) was called upon to determine whether to approve the Steel Frame Solutions Pty Ltd (Detailing & Estimating) Enterprise Agreement 2013-2016. The applicant, Steel Frame Solutions Pty Ltd, sought approval of the agreement, which had been negotiated between the company and the unions representing the employees. The unions had filed objections to the agreement, raising concerns over various provisions.

The primary legal issues the FWC needed to address were whether the agreement was fairly negotiated, complied with the applicable statutory requirements, and whether it met the "better off overall test" (BOOT) for the employees. The unions argued that the agreement did not meet the BOOT because it provided for lower wages and conditions than those provided by the relevant industry award. The unions also contended that some provisions in the agreement were not fairly negotiated, as they were imposed by the employer without adequate consultation.

In its decision, the FWC found that the agreement had been fairly negotiated and complied with the statutory requirements. The FWC held that the agreement met the BOOT as the employees would receive a combination of higher wages, reduced working hours, and other benefits that, on balance, made them better off. The FWC rejected the unions' argument that the agreement did not meet the BOOT, finding that the agreement provided for a mix of wage increases, reduced working hours, and other benefits that overall improved the employees' conditions. The FWC also found that the agreement was not deficient in its negotiation process, as the employer had engaged in good faith negotiations with the unions.

The FWC approved the Steel Frame Solutions Pty Ltd (Detailing & Estimating) Enterprise Agreement 2013-2016, dismissing the objections raised by the unions. The agreement was deemed to be fairly negotiated, to comply with the applicable statutory requirements, and to meet the BOOT for the employees. The decision reinforces the importance of good faith negotiations and the need for agreements to provide overall benefits to employees to be approved by the FWC.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established