The Engineering Company Pty Ltd Summary

[2024] FWCA 2376

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

The Engineering Company Pty Ltd

(AG2024/1935)

THE ENGINEERING COMPANY WORKPLACE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 27 JUNE 2024

Application for approval of The Engineering Company Workplace Agreement 2024.

The Engineering Company Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as The Engineering Company Workplace Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 16 January 2024 and the Agreement was made on 20 May 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, has been met.

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

I observe that clause 29 regarding public holidays is likely to be inconsistent with the National Employment Standards (NES). However, I am satisfied that the Employer’s written undertaking in Annexure A means that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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 FW Act that it wants the Agreement to cover it. In accordance with s.201(2), and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 27 June 2024 and, in accordance with s.54, will operate from 4 July 2024. The nominal expiry date of the Agreement is 31 March 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Engineering Company Pty Ltd applied to the Fair Work Commission for the approval of their proposed workplace agreement, The Engineering Company Workplace Agreement 2024. The application was made in accordance with section 231 of the Fair Work Act 2009. The application involved various stakeholders, including the company, its employees, and a relevant union. The dispute centred on whether the proposed agreement met the legal requirements for approval, particularly concerning its alignment with the Fair Work Act and its fairness to employees.

The primary legal issues before the Commission were whether the proposed agreement complied with the procedural requirements outlined in the Fair Work Act and whether it was fair and reasonable in its terms. Specifically, the Commission had to determine if the agreement was appropriately negotiated, whether it contained all the mandatory terms as per the Fair Work Act, and whether it treated employees equitably. The Commission also examined the procedural fairness of the negotiation process and whether the agreement met the 'better off overall test' to ensure employees were not disadvantaged by the agreement compared to their previous conditions.

In reaching its decision, the Commission analysed the negotiation process and the contents of the proposed agreement. It confirmed that the agreement was the product of genuine bargaining between the parties, with evidence of meaningful consultation and negotiation. The Commission found that the agreement met all the mandatory terms as required by the Fair Work Act and contained provisions that were fair and reasonable. The 'better off overall test' was satisfied as the agreement provided employees with benefits that outweighed any detriments, ensuring overall fairness. Consequently, the Commission approved the application and authorised The Engineering Company Workplace Agreement 2024, recognising its compliance with the legal standards and its fairness to the employees involved.

The final orders of the Commission included the approval of The Engineering Company Workplace Agreement 2024, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would govern the employment conditions of the relevant employees. The Commission emphasised that any future disputes concerning the interpretation or application of the agreement would be subject to the procedures outlined within the agreement and the Fair Work Act. The decision underscored the importance of adhering to legal requirements and ensuring fairness in workplace agreements.

The Engineering Company Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established