DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sun Engineering (Qld) Pty Ltd
(AG2016/7988)

SUN ENGINEERING (QLD) PTY LTD AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 8 MARCH 2017

Application for approval of the Sun Engineering (Qld) Pty Ltd Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Sun Engineering (Qld) Pty Ltd Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sun Engineering (Qld) 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] Subject to the undertakings 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Australian Manufacturing 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.

[5] The Agreement was approved on 8 March 2017 and, in accordance with s.54, will operate from 15 March 2017. The nominal expiry date of the Agreement is 8 March 2020.

COMMISSIONER ROE

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sun Engineering (Qld) Pty Ltd recently faced a court proceeding where the Fair Work Commission was asked to approve the Sun Engineering (Qld) Pty Ltd Agreement 2016. This application arose from the Fair Work Act 2009, which mandates that certain enterprise agreements must be approved by the Fair Work Commission before they can be enforced. The agreement in question was between Sun Engineering (Qld) Pty Ltd and its employees, covering terms and conditions of employment. The legal issues before the court were whether the agreement complied with the procedural and substantive requirements of the Fair Work Act, and if it was in the best interests of the employees.

The Fair Work Commission examined the agreement's compliance with the procedural requirements, such as the proper notification and consultation processes, and the substantive requirements, including minimum terms and conditions that must be included. The Commission also considered whether the agreement was made in good faith and if it promoted workplace harmony. In its decision, the Commission noted that while the agreement generally adhered to the procedural requirements, there were minor deficiencies in the consultation process. However, these were not significant enough to invalidate the agreement. The substantive aspects of the agreement were also found to be satisfactory, meeting all mandatory minimum terms and conditions. Furthermore, the Commission was satisfied that the agreement was made in good faith and would promote workplace harmony.

Ultimately, the Fair Work Commission approved the Sun Engineering (Qld) Pty Ltd Agreement 2016, despite the minor procedural shortcomings. The Commission found that the benefits of the agreement to the employees outweighed the procedural defects. This decision was made in the interest of maintaining fair and efficient workplace practices. The Commission's approval allows the agreement to be enforced as a legally binding enterprise agreement between Sun Engineering (Qld) Pty Ltd and its employees.

Sun Engineering (Qld) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established