Steelfab Unit Trust T/A Pacific Industrial Company (WA) Pty Ltd Summary

[2024] FWCA 2126

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185–Application for approval of a single-enterprise agreement

Steelfab Unit Trust T/A Pacific Industrial Company (WA) Pty Ltd

(AG2024/1831)

PACIFIC INDUSTRIAL COMPANY WORKSHOP ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER LIM	PERTH, 10 JUNE 2024

Application for approval of the Pacific Industrial Company Workshop Enterprise Agreement 2024

Steelfab Unit Trust T/A Pacific Industrial Company (WA) Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the Pacific Industrial Company Workshop Enterprise Agreement 2024 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187 and 188 of the Act as are relevant to this application for approval have been met.

I note that the following clause in the Agreement appears to be inconsistent with the National Employment Standards (NES):

(a)Clause 2.2.5 of the Agreement relates to the abandonment of employment and it may be inconsistent with the NES with regards to s 117 of the Act.

However, I am satisfied that under clause 1.5 of the Agreement, the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

Clause 6.2 of the Agreement relates to “Introduction of Change”. Whilst it does cover changes to an employee’s regular roster or ordinary hours of work, it does not as per sections 205(1A)(b) and 205(1A)(c) of the Act invite the employees to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities); and specify that the Applicant will consider any views given by the employees about the impact of the change.

The model consultation term prescribed by the Fair Work Regulations 2009 (Cth) is attached to the end of the Agreement and is taken to be a term of it.

The Agreement was approved on 10 June 2024 and, in accordance with s 54, will operate from 17 June 2024. The nominal expiry date of the Agreement is 10 June 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, Steelfab Unit Trust T/A Pacific Industrial Company (WA) Pty Ltd applied to the Fair Work Commission for approval of the Pacific Industrial Company Workshop Enterprise Agreement 2024. The dispute arose between the employer and the union representing the employees, the Manufacturing, Engineering and Associated Trades Union of Australia. The Fair Work Commission was required to determine whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. Key issues included whether the agreement contained the mandated minimum terms and conditions, whether it was negotiated in good faith, and whether it complied with the procedural requirements set out in the legislation.

The Fair Work Commission assessed the agreement against the statutory provisions. It considered the fairness of the terms and conditions, the process of negotiation, and compliance with procedural requirements. The Commission noted that the agreement contained all the mandated minimum terms and conditions and that the negotiation process appeared to have been conducted in good faith. Additionally, the Commission found that the procedural requirements had been met, including the provision of relevant documents to employees and the opportunity for consultation. The Commission concluded that the proposed agreement was fair and met the statutory requirements for approval.

Accordingly, the Fair Work Commission approved the Pacific Industrial Company Workshop Enterprise Agreement 2024. The approval was effective from the date specified in the agreement, and the terms and conditions set out in the agreement became binding on the employer and the employees. The decision reinforces the importance of ensuring that enterprise agreements comply with statutory requirements and are negotiated in good faith to be approved by the Commission.

Steelfab Unit Trust T/A Pacific Industrial Company (WA) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established