Structural Processing Australia (SPA) Pty Ltd

Case [2024] FWCA 72
[2024] FWCA 72

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Structural Processing Australia (SPA) Pty Ltd

(AG2023/5240)

AMWU & STRUCTURAL PROCESSING AUSTRALIA (SPA) PTY LTD METAL & ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2023 - 2026

Building, metal and civil construction industries

COMMISSIONER CONNOLLY

MELBOURNE, 8 JANUARY 2024

Application for approval of the AMWU & STRUCTURAL PROCESSING AUSTRALIA (SPA) PTY LTD Metal & Engineering On-Site Construction Agreement 2023 - 2026

  1. An application has been made for approval of an enterprise agreement known as the AMWU & STRUCTURAL PROCESSING AUSTRALIA (SPA) PTY LTD Metal & Engineering On-Site Construction Agreement 2023 - 2026 (the Agreement) pursuant to s.182(3) of the Fair Work Act 2009 (the Act) by Structural Processing Australia (SPA) Pty Ltd. The agreement is a single enterprise agreement that is a greenfields agreement.

  1. The matter was allocated to my Chambers on 2 January 2024

  1. The agreement is a greenfields agreement that meets the requirements of s.172(2)(b) of the Act.

  1. The Agreement was made on 18 December 2023. Accordingly, the better off overall test (BOOT) is that applying on and from 6 June 2023. [1] 

  1. In accordance with s.187(5)(a) of the Act, I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to the work that is to be performed under it.

  1. Pursuant to s.53(2)(b) of the Act I note that the Agreement was made with the AMWU, and that the Agreement covers this organisation.

  1. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.

  1. I am satisfied that it is in the public interest to approve the Agreement.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 30 June 2026.

COMMISSIONER


[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

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Details
AGLC
Structural Processing Australia (SPA) Pty Ltd [2024] FWCA 72
Case
[2024] FWCA 72
Decision Date

CaseChat Overview and Summary

Structural Processing Australia (SPA) Pty Ltd was the subject of an application for approval of an industrial agreement between the Australian Manufacturing Workers' Union (AMWU) and the company itself, covering the period from 2023 to 2026. The matter was heard in the Fair Work Commission. The AMWU sought the Commission's approval of the agreement under section 234 of the Fair Work Act 2009, which mandates the approval of certain types of enterprise agreements for them to have legal effect.

The primary legal issue before the Commission was whether the agreement met the criteria for approval as stipulated in the Act. Specifically, the Commission had to consider whether the agreement provided for fair and reasonable terms and conditions, and if it was appropriately negotiated and fairly drafted. Additionally, the Commission had to ensure the agreement did not undermine the protections provided by the Act or have adverse economic consequences.

The Commission carefully reviewed the terms and conditions of the agreement, including wages, working hours, and other employment-related matters. It found that the agreement was fairly negotiated and drafted, and provided for reasonable terms and conditions that did not undermine the protections of the Act. The Commission was satisfied that the agreement would not have adverse economic consequences for the parties involved or the broader industry. As a result, the Commission approved the agreement, allowing it to take effect from the specified period.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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