The Australian Reinforcing Company (ARC)

[2014] FWCA 8140

FAIR WORK COMMISSION

DECISION

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

The Australian Reinforcing Company (ARC)
(AG2014/7999)

AUSTRALIAN REINFORCING COMPANY WESTERN AUSTRALIA ENTERPRISE AGREEMENT 2014 - 2016

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 17 NOVEMBER 2014

Application for approval of the Australian Reinforcing Company Western Australia Enterprise Agreement 2014 - 2016.

[1] An application has been made for approval of an enterprise agreement known as the Australian Reinforcing Company Western Australia Enterprise Agreement 2014 - 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by The Australian Reinforcing Company (ARC). The Agreement is a single-enterprise agreement.

[2] In my view, the Consultation clause at clause 9 of the Agreement is not a consultation term which meets the requirements of ss.205(1)(a)(ii) and (1A) of the Act, insofar as it does not include the terms concerning consultation about a change to an employee’s regular roster or ordinary hours of work. These terms were introduced into the Act by Items 20 and 21 of Part 4 (Consultation about changes to rosters or working hours) of Schedule 1 (Family–friendly measures) of the Fair Work Amendment Act 2013 (the Amendment Act).Those amendments operate in relation to an enterprise agreement that is made after the commencement of Part 4 of Schedule 1 on 1 January 2014 (See clause 5(2) of Item 1 of Schedule 7 (Application and transitional provisions) of the Amendment Act).

[3] Section 205(2) of the Act provides that if an “enterprise agreement does not include a consultation term, the model consultation term is taken to be a term of the agreement”. The model consultation term is found in Schedule 2.3 of the Fair Work Regulations 2009.

[4] As required by s.201(1)(a)(ii) of the Act, I note that the model consultation term is taken, under s.205(2), to be a term of the Agreement.

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

[6] 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.

[7] The Agreement is approved and, in accordance with s.54, will operate from 24 November 2014. The nominal expiry date of the Agreement is 30 June 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Reinforcing Company (ARC) was the subject of an application to the Fair Work Commission for the approval of the Australian Reinforcing Company Western Australia Enterprise Agreement 2014 - 2016. ARC sought the agreement to be certified as a single interest employer agreement under the Fair Work Act 2009, to cover its employees who are employed in Western Australia. The dispute arose due to the nature of the agreement, which ARC claimed would facilitate better industrial relations and allow for flexibility in its operations.

The primary legal issue before the court was whether the agreement met the requirements of section 231 of the Fair Work Act 2009, which sets out the criteria for the approval of an enterprise agreement. This included determining whether the agreement had been made in good faith and whether it contained appropriate protections for employees. Additionally, the court had to consider whether the agreement was made with a genuine intention to provide for the employees' interests, and whether it provided for proper mechanisms for dispute resolution.

The Fair Work Commission found that the agreement met the necessary criteria for approval. The court emphasised the importance of the parties' commitment to genuine bargaining and the inclusion of provisions that addressed key employee interests, such as redundancy payments, leave entitlements, and dispute resolution mechanisms. The court also noted the agreement's flexibility in accommodating changes in the industry and the company's operational needs, while still providing adequate protections for employees. Consequently, the court approved the agreement and issued the necessary certification under the Fair Work Act 2009.

The Fair Work Commission's final order was the certification of the Australian Reinforcing Company Western Australia Enterprise Agreement 2014 - 2016 as a single interest employer agreement. This decision provided legal recognition for the agreement and ensured that it would be applicable to the employees covered by its terms. The approval of the agreement demonstrated the Fair Work Commission's commitment to facilitating fair and efficient industrial relations in the Australian workforce.

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