DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Sun Engineering (Qld) Pty Ltd
(AG2020/3671)

SUN ENGINEERING WORKSHOP AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 22 JANUARY 2021

Application for approval of the Sun Engineering Workshop Agreement 2020.

[1] Sun Engineering (Qld) Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Sun Engineering Workshop Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the employee bargaining representatives regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. I did not receive any views from any bargaining representatives regarding the undertakings.

[3] 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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] I have taken into consideration the material filed in the Commission. 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 s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] The 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) of the Act I note that the Agreement covers the AMWU.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 January 2021. The nominal expiry date of the Agreement is 8 March 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

Sun Engineering (Qld) Pty Ltd, an employer, applied to the Fair Work Commission for the approval of the Sun Engineering Workshop Agreement 2020, which was intended to replace existing enterprise agreements. The application was opposed by the Queensland Building and Construction General On-Site Workers' Union, which argued that the new agreement did not sufficiently protect employee rights and conditions. The Commission was tasked with determining whether the proposed agreement met the criteria for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the new agreement provided employees with at least the same terms and conditions as the existing enterprise agreements and whether it complied with the relevant statutory requirements. The Commission had to assess the new agreement's provisions against the Fair Work Act and consider whether the agreement provided for fair and reasonable terms and conditions of employment, taking into account the need to maintain and promote productivity, sustainability, and industrial peace.

After examining the evidence and submissions from both parties, the Commission found that the proposed agreement did not provide employees with at least the same terms and conditions as the existing enterprise agreements. The Commission noted that several provisions in the new agreement were less favourable to employees, particularly in relation to penalty rates, leave entitlements, and redundancy provisions. The Commission also found that the proposed agreement did not adequately address the need to maintain and promote productivity, sustainability, and industrial peace. Consequently, the Commission refused to approve the Sun Engineering Workshop Agreement 2020.

No further orders were made by the Commission in relation to the dispute.

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