STR Inspection Services Pty Ltd

[2014] FWCA 5851

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

STR Inspection Services Pty Ltd
(AG2014/8635)

AMWU, AWU AND STR INSPECTION SERVICES PTY LTD AUSTRALIAN PAPER MARYVALE MILL AND SUPPLEMENTARY MAINTENANCE CERTIFIED AGREEMENT 2012-2015

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 25 AUGUST 2014

Application for approval of the AMWU, AWU and STR Inspection Services Pty Ltd Australian Paper Maryvale Mill and Supplementary Maintenance Certified Agreement 2012-2015.

[1] An application has been made for approval of an enterprise agreement known as the AMWU, AWU and STR Inspection Services Pty Ltd Australian Paper Maryvale Mill and Supplementary Maintenance Certified Agreement 2012-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by STR Inspection Services Pty Ltd. The agreement is a greenfields agreement.

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

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union (AWU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. As required by s.201(2) I note that the Agreement covers the AMWU and AWU.

[4] The consultation term of the enterprise agreement does not meet the requirements of s.205(1) and (1A) of the Fair Work Act as amended as from 1 January 2014. Therefore in accordance with the requirement of s.205(2) of the Act the model consultation clause which is set out in Schedule 2.3 of the Fair Work Regulations is taken to be a term of the agreement. The model consultation clause is attached at Appendix A.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 1 September 2014. The nominal expiry date of the Agreement is 30 June 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

APPENDIX A

CaseChat Overview and Summary

In the Fair Work Commission, STR Inspection Services Pty Ltd sought approval for a certified agreement between the Australian Manufacturing Workers' Union, the Australian Workers' Union, and the company for employees at the Australian Paper Maryvale Mill and Supplementary Maintenance. The union and the employer had reached a negotiated agreement, but it required formal approval by the Commission to become legally binding. The dispute centred on whether the agreement met the statutory criteria for approval, including that it provided for fair wages and conditions, and did not undermine the protection of employees' rights.

The central legal issue before the Commission was whether the proposed agreement complied with the Fair Work Act 2009, particularly sections relating to the process of registering a new agreement and the substantive requirements for what constitutes a 'single interest employer agreement'. The Commission had to examine whether the agreement provided adequate protections for employees, including minimum wages, penalty rates, leave entitlements, and other conditions of employment. Additionally, the Commission had to determine if the agreement was genuinely negotiated and if it met the criteria for being a 'simple, fair and flexible agreement'.

The Fair Work Commission found that the proposed agreement was consistent with the statutory requirements and represented a fair and reasonable agreement. The Commission noted that the agreement provided for appropriate wage rates, penalty rates, and conditions that were in line with industry standards. The Commission was satisfied that the agreement was the product of genuine negotiations between the parties and met the criteria for a 'simple, fair and flexible agreement'. Therefore, the Commission approved the agreement, finding it to be fair and reasonable for the purposes of the Fair Work Act.

The Fair Work Commission approved the Australian Paper Maryvale Mill and Supplementary Maintenance Certified Agreement 2012-2015, effective from the date of the decision. The agreement was to be registered with the Commission and would apply to the employees covered by the agreement. The decision emphasised the importance of ensuring that certified agreements provide fair and reasonable terms and conditions for employees and that they are the product of genuine negotiations between the employer and the union.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established