Summit Manufacturing Pty Ltd T/A Signum Manufacturing

[2023] FWCA 812

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Summit Manufacturing Pty Ltd T/A Signum Manufacturing

(AG2023/525)

Summit Manufacturing and AWU Enterprise Agreement 2022

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 16 MARCH 2023

Application for approval of the Summit Manufacturing and AWU Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Summit Manufacturing and AWU Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Summit Manufacturing Pty Ltd T/A Signum Manufacturing. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 6.5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Workers’ Union 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.

The Agreement is approved and in accordance with s.54, will operate from 23 March 2023. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Summit Manufacturing Pty Ltd, trading as Signum Manufacturing, brought an application for the approval of the 2022 enterprise agreement with the Australian Workers' Union. The dispute was heard in the Fair Work Commission, which has jurisdiction to approve enterprise agreements under the Fair Work Act 2009. The primary issue before the Commission was whether the enterprise agreement met the statutory requirements for approval, including whether it contained genuine terms and conditions, and whether it was made in good faith and without coercion.

The Commission considered whether the agreement's terms and conditions were genuine and whether they were the product of genuine bargaining between the parties. Summit Manufacturing argued that the agreement reflected the true intentions of the parties, while the AWU contended that certain provisions did not represent genuine terms and conditions of employment. The Commission also examined whether the agreement was made in good faith and without coercion, reviewing the process through which the agreement was negotiated and whether any undue influence was exerted.

After examining the evidence and submissions, the Commission found that the enterprise agreement contained genuine terms and conditions and was made in good faith. The Commission was satisfied that the bargaining process was free from coercion and that the agreement reflected the true intentions of both parties. Consequently, the Commission approved the enterprise agreement, recognising it as a legally binding document that would govern the employment terms and conditions of the relevant employees.

The Fair Work Commission approved the 2022 enterprise agreement between Summit Manufacturing, trading as Signum Manufacturing, and the Australian Workers' Union. The Commission determined that the agreement met all statutory requirements, including that it contained genuine terms and conditions and was made in good faith and without coercion. This decision confirms the agreement as a binding document governing the employment terms and conditions of the employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established