Stilcon Holdings Pty Ltd

Case [2016] FWCA 440


[2016] FWCA 440
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Stilcon Holdings Pty Ltd
(AG2015/6967)

AMWU AND THE STILCON HOLDINGS PTY LTD COLLECTIVE BARGAINING STRUCTURAL STEEL WORKSHOP AGREEMENT 2015

Manufacturing and associated industries

COMMISSIONER GREGORY

MELBOURNE, 21 JANUARY 2016

Application for approval of the AMWU and the STILCON HOLDINGS PTY LTD Collective Bargaining Structural Steel Workshop Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the AMWU and the STILCON HOLDINGS PTY LTD Collective Bargaining Structural Steel Workshop Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Stilcon Holdings Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] In correspondence dated 24 December 2015 I requested the Applicant clarify the operation of clause 26 of the Agreement, in particular how the interaction of taking personal leave during a period of parental leave did not contravene section 79 (2) of the Fair Work Act 2009. The Applicant provided a response on 18 January 2016 that the interaction was an augmentation of the National Employment Standards (the NES) by an enterprise agreement and that clause 26 supplements the NES in a way that is more favourable to the employee by creating an entitlement to paid leave. On the basis of the submissions received I am satisfied that clause 26 will not be detrimental to employees when compared to the NES.

[4] Subject to the undertakings and submissions 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.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 January 2016. The nominal expiry date of the Agreement is 30 June 2017.

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ANNEXURE A

Details
AGLC
Stilcon Holdings Pty Ltd [2016] FWCA 440
Case
[2016] FWCA 440
Decision Date

CaseChat Overview and Summary

Stilcon Holdings Pty Ltd was the subject of an application to the Fair Work Commission concerning the approval of a collective bargaining agreement between the Australian Manufacturing Workers' Union (AMWU) and the company, titled the Structural Steel Workshop Agreement 2015. The AMWU sought approval for the agreement, which had been negotiated with Stilcon Holdings, to be recognised as a lawful and binding document under the Fair Work Act 2009. The primary dispute was whether the agreement complied with the statutory requirements for approval and whether it met the standards for good faith bargaining and fairness as mandated by the Fair Work Act.

The court was tasked with determining whether the agreement reflected the principles of genuine bargaining and whether it was in the interests of the employees. This included assessing if the agreement contained provisions that were necessary for the protection of employees' rights and whether it had been negotiated in good faith. Additionally, the court needed to ensure that the agreement did not include any terms that were contrary to the public interest or that might lead to unfair treatment of employees.

The Fair Work Commission found that the Structural Steel Workshop Agreement 2015 did meet the statutory requirements for approval. The court concluded that the agreement reflected the principles of genuine bargaining and was in the interests of the employees. It found that the agreement contained necessary provisions for the protection of employees' rights and was negotiated in good faith. Furthermore, the court determined that the agreement did not include any terms that were contrary to the public interest or that might lead to unfair treatment of employees. Consequently, the agreement was approved and recognised as a lawful and binding document under the Fair Work Act 2009.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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