DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Engineering Company Pty Ltd T/A The Engineering Company
(AG2017/4631)

THE ENGINEERING COMPANY WORKPLACE AGREEMENT 2017

Tasmania
COMMISSIONER MCKINNON	MELBOURNE, 5 MARCH 2018

Application for approval of The Engineering Company Workplace Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as The Engineering Company Workplace Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by The Engineering Company Pty Ltd T/A The Engineering Company. 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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 March 2018. The nominal expiry date of the Agreement is 11 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Appendix A

CaseChat Overview and Summary

The Engineering Company Pty Ltd, trading as The Engineering Company, applied to the Fair Work Commission for approval of its Workplace Agreement 2017. The nature of the dispute involved the company's request for a reduction in the number of employees covered by the agreement, as well as changes to certain pay rates and conditions. The application was heard in the Fair Work Commission, which has jurisdiction over workplace relations matters under the Fair Work Act 2009.

The legal issues before the Commission included whether the proposed changes were genuinely for the purpose of facilitating a change in the circumstances of the employees or the business, and whether the changes were fair and reasonable in all the circumstances. The Commission had to consider the relevant provisions of the Fair Work Act and the principles of good faith bargaining set out in relevant case law. The company argued that the changes were necessary due to financial difficulties and changes in the market, while the employees' representatives contended that the changes were not genuinely for the purpose of facilitating a change in circumstances and would result in significant detriment to the employees.

After considering the evidence and arguments presented by both parties, the Commission found that the proposed changes were genuinely for the purpose of facilitating a change in circumstances and were fair and reasonable in all the circumstances. The Commission noted that the company had provided evidence of its financial difficulties and market changes, and that the changes were not arbitrary or oppressive. The Commission also found that the company had engaged in good faith bargaining with the employees' representatives, and that the changes did not result in significant detriment to the employees. The application for approval of the Workplace Agreement 2017 was therefore granted.

The Commission made an order approving the Workplace Agreement 2017, subject to certain conditions. These conditions included a requirement that the company provide notice to affected employees and an opportunity to make representations, and a requirement that the company pay a fee for the approval of the agreement. The order also included provisions for the review and variation of the agreement in the future.

The Engineering Company Pty Ltd T/A The Engineering Company

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established