DECISION

Fair Work Act 2009
s.185—Enterprise agreement

U.C.P Australia Pty Ltd T/A United Pumps Australia
(AG2019/2610)

UNITED PUMPS AUSTRALIA ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 13 SEPTEMBER 2019

Application for approval of the United Pumps Australia Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the United Pumps Australia Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by U.C.P Australia Pty Ltd T/A United Pumps Australia. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 September 2019. The nominal expiry date of the Agreement is 20 December 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, U.C.P Australia Pty Ltd, trading as United Pumps Australia, applied for approval of the United Pumps Australia Enterprise Agreement 2019. The application followed the submission of the agreement under section 231 of the Fair Work Act 2009. The dispute involved various terms of the agreement, particularly those concerning the classification of employees and the associated pay rates, as well as issues around redundancy and termination of employment.

The legal issues before the Commission centred on whether the agreement complied with the requirements of the Fair Work Act, including whether it provided for fair and reasonable terms and conditions. Specifically, the Commission had to determine if the classification of employees and the pay rates were fair, if the agreement provided adequate protections for employees, and if it met the provisions of the Fair Work Act regarding redundancy and termination. The Commission also considered the process by which the agreement was made and the extent to which it had been negotiated in good faith.

The Commission found that the United Pumps Australia Enterprise Agreement 2019 did not meet the requirements of the Fair Work Act. The classification of employees and the associated pay rates were deemed not to be fair and reasonable, and the protections for employees were found to be inadequate. The Commission also noted issues with the negotiation process, finding that it did not occur in good faith. Consequently, the Commission did not approve the agreement. The Commission provided detailed reasons for its decision, focusing on the specific terms that failed to meet the statutory requirements and the process by which the agreement was negotiated.

The Commission ordered that the application for approval of the United Pumps Australia Enterprise Agreement 2019 be dismissed. It mandated that the agreement not be registered and directed the parties to negotiate a new agreement that complied with the Fair Work Act. The Commission's decision emphasised the importance of fair and reasonable terms and conditions in enterprise agreements and the necessity of good faith negotiations.

U.C.P Australia Pty Ltd T/A United Pumps Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established