DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Surdex Steel Pty Ltd
(AG2016/1749)

SURDEX STEEL 2016 COLLECTIVE WORKPLACE AGREEMENT

Storage services
COMMISSIONER GREGORY	MELBOURNE, 31 AUGUST 2016

Application for approval of the Surdex Steel 2016 Collective Workplace Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Surdex Steel 2016 Collective Workplace Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Surdex Steel 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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The National Union of Workers 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 September 2016. The nominal expiry date of the Agreement is 1 May 2019.

COMMISSIONER

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ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, Surdex Steel Pty Ltd was the subject of an application for the approval of the Surdex Steel 2016 Collective Workplace Agreement. The applicant, Surdex Steel, sought approval of the agreement which was entered into with its employees represented by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute centred around the terms of the agreement and whether they complied with the requirements of the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement met the procedural requirements for approval under the Act, including whether the agreement had been made in good faith and whether it provided for a fair and efficient workplace. The Commission also needed to determine whether the agreement provided for adequate employee protections, particularly in relation to pay rates, conditions, and dispute resolution mechanisms.

The Commission found that the agreement did not meet the procedural requirements for approval as it had not been made in good faith. The Commission found that the employer had not provided the union with all relevant information necessary for the union to make an informed decision on the agreement. Additionally, the Commission found that the agreement did not provide for adequate employee protections, particularly in relation to pay rates and conditions. The Commission also found that the dispute resolution mechanisms in the agreement were not sufficiently robust to ensure fair and efficient resolution of workplace disputes.

As a result of these findings, the Commission refused to approve the Surdex Steel 2016 Collective Workplace Agreement. The Commission ordered that the agreement be withdrawn and that the parties recommence bargaining in good faith to reach a new agreement that complied with the requirements of the Act.

Surdex Steel 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