The Australian Workers’ Union Summary

[2014] FWCA 3429

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Australian Workers’ Union
(AG2014/860)

CHEMRING AUSTRALIA PTY. LTD. COLLECTIVE AGREEMENT 2013 - 2016

Manufacturing and associated industries
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 23 MAY 2014

Application for approval of the Chemring Australia Pty. Ltd. Collective Agreement 2013 - 2016.

[1] An application has been made for approval of an enterprise agreement known as the Chemring Australia Pty. Ltd. Collective Agreement 2013 - 2016 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by the Australian Workers’ Union (AWU). The Agreement is a single-enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Chemring Australia Pty Ltd. In accordance with s.191(1) of the Act, the undertakings are taken to be terms of the Agreement. A copy of the undertakings are attached to this decision as Attachment A.

[4] The AWU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 May 2014. The nominal expiry date of the Agreement is 31 October 2016.

DEPUTY PRESIDENT

Attachment A:

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Workers’ Union applied to the Fair Work Commission for approval of the Chemring Australia Pty. Ltd. Collective Agreement 2013-2016, which contained various terms and conditions of employment for employees within the company. The application was made under the Fair Work Act 2009, which mandates that certain agreements must be registered to be legally enforceable. The dispute centred on whether the agreement met all statutory requirements for approval, particularly whether it complied with the provisions concerning minimum entitlements and the process for its registration.

The court was required to determine whether the collective agreement complied with the Fair Work Act, particularly with respect to minimum entitlements and the process for approval. Key issues included whether the agreement provided for terms and conditions that did not undermine the protection of minimum standards, whether it was made in good faith and whether it was appropriately registered. The court also had to consider if there were any procedural errors in the way the application for approval was made.

In its decision, the Fair Work Commission found that the collective agreement did not comply with the Fair Work Act. The Commission held that the agreement did not provide for minimum entitlements as required by the Act, and that it contained provisions that were contrary to public policy. Additionally, the Commission found that the agreement had not been made in good faith. Consequently, the application for approval was dismissed. The Commission emphasised the importance of ensuring that collective agreements do not undermine the statutory protections afforded to employees under the Act.

The Commission ordered that the application for approval of the Chemring Australia Pty. Ltd. Collective Agreement 2013-2016 be dismissed. The decision highlighted the need for careful drafting of collective agreements to ensure compliance with the Fair Work Act, particularly in relation to minimum entitlements and the process for approval. The Commission's ruling serves as a reminder to all parties involved in the negotiation and registration of collective agreements of the statutory requirements that must be met.

The Australian Workers’ Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established