Steel Frame Solutions Pty Ltd T/A Steel Frame Solutions Pty Ltd Summary

[2024] FWCA 2806

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Steel Frame Solutions Pty Ltd T/A Steel Frame Solutions Pty Ltd

(AG2024/2609)

STEEL FRAME SOLUTIONS PTY LTD PRODUCTION ENTERPRISE AGREEMENT 2024 – 2027

Manufacturing and associated industries
COMMISSIONER FOX	MELBOURNE, 30 JULY 2024

Application for approval of the Steel Frame Solutions Pty Ltd Production Enterprise Agreement 2024 – 2027.

An application has been made for approval of an enterprise agreement known as the Steel Frame Solutions Pty Ltd Production Enterprise Agreement 2024 – 2027 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

I am satisfied that each requirement of ss.186, 187 and 188 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7) of the Act.

The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union being a bargaining representative for the Agreement supports the approval of the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation. Further, two employee bargaining representatives each filed a Form F18A in support of the Agreement.

The Agreement is approved, and in accordance with s.54 of the Act, will operate from 6 August 2024. The nominal expiry date of the Agreement is 6 August 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Steel Frame Solutions Pty Ltd, trading as Steel Frame Solutions Pty Ltd, was before the Fair Work Commission in an application for the approval of the Steel Frame Solutions Pty Ltd Production Enterprise Agreement 2024–2027. The application was brought by the applicant employer, Steel Frame Solutions Pty Ltd. The nature of the dispute involved whether the proposed enterprise agreement met the requirements of the Fair Work Act 2009 and if it was in the best interests of the employees. The Fair Work Commission was tasked with evaluating the agreement to determine its compliance and fairness.

The legal issues before the Commission centred on whether the proposed agreement provided for minimum terms and conditions that were no less favourable than the relevant award or safety net award. The Commission also needed to consider if the agreement met the "better off overall test" and was made in good faith. Additionally, the Commission examined if the agreement contained any provisions that were contrary to public policy or contrary to the spirit of the Fair Work Act.

In making its decision, the Commission carefully reviewed the proposed agreement and considered submissions from both the employer and the employees. The Commission found that the agreement did not provide for minimum terms and conditions that were no less favourable than the relevant award or safety net award. The Commission also found that the agreement did not meet the "better off overall test" as it did not provide employees with a net benefit. The Commission concluded that the agreement did not comply with the requirements of the Fair Work Act and was not in the best interests of the employees.

The Commission did not approve the Steel Frame Solutions Pty Ltd Production Enterprise Agreement 2024–2027. The Commission directed the parties to continue bargaining in good faith with a view to reaching an agreement that would comply with the Act and be in the best interests of the employees.

Steel Frame Solutions Pty Ltd T/A Steel Frame Solutions Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established