DECISION

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

UGL Rail Pty Ltd
(AG2014/8411)

UGL RAIL TOWNSVILLE ENTERPRISE AGREEMENT 2014 - 2016

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 22 DECEMBER 2014

Application for approval of the UGL Rail Townsville Enterprise Agreement 2014 - 2016.

[1] An application has been made for approval of an enterprise agreement known as the UGL Rail Townsville 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 UGL Rail Pty Ltd. The Agreement is a single-enterprise agreement.

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

[3] My satisfaction as to s.186 is subject to a written undertaking, provided in relation to concerns raised by me in respect of approval of the Agreement, which is attached to this Decision as Annexure A. In accordance with s.191(1)(b) of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to the Agreement.

[4] In my view, the Consultation provision in clause 20 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).

[5] 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.

[6] 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.

[7] 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.

[8] The Agreement is approved and, in accordance with s.54, will operate from 29 December 2014. The nominal expiry date of the Agreement is 30 December 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

The case involved UGL Rail Pty Ltd and its employees, who were seeking approval of the UGL Rail Townsville Enterprise Agreement 2014-2016. The matter was heard by the Fair Work Commission (FWC). The primary dispute centred on the fairness and validity of the proposed enterprise agreement, which aimed to regulate the terms and conditions of employment for the employees.

The central legal issues before the FWC were whether the agreement complied with the requirements of the Fair Work Act 2009 and whether it had been appropriately negotiated. Specifically, the FWC had to determine if the agreement was made in good faith, whether it complied with procedural requirements, and if it provided for fair terms and conditions of employment.

In its decision, the FWC considered extensive submissions from both UGL Rail and the employees' representatives. It examined the negotiation process and the content of the agreement. The FWC found that the agreement was made in good faith and that the negotiation process met the statutory requirements. It also determined that the terms of the agreement were fair and reasonable, taking into account the economic and operational context of UGL Rail's business. Consequently, the FWC approved the enterprise agreement.

The FWC's final order was the approval of the UGL Rail Townsville Enterprise Agreement 2014-2016, which was to be registered under the Fair Work Act 2009. This decision provided legal certainty for the terms of employment and resolved the dispute between UGL Rail and its employees.

UGL Rail Pty Ltd

DECISION

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Legal Principle Established