UGL Rail Pty Ltd Summary

[2013] FWCA 9146

FAIR WORK COMMISSION

DECISION

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

UGL Rail Pty Ltd
(AG2013/11459)

UGL SPOTSWOOD MAINTENANCE CENTRE ENTERPRISE AGREEMENT 2013 - 2016

Rail industry
COMMISSIONER CARGILL	SYDNEY, 22 NOVEMBER 2013

Application for approval of the UGL Spotswood Maintenance Centre Enterprise Agreement 2013 - 2016.

[1] An application has been made for approval of an enterprise agreement known as the UGL Spotswood Maintenance Centre Enterprise Agreement 2013 - 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by UGL Rail Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australian Rail, Tram and Bus Industry Union (ARTBU), each being a bargaining representative for the Agreement, have 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 each organisation.

[4] The Agreement is approved and, in accordance with s.54, will operate from 29 November 2013. The nominal expiry date is 30 September 2016.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Fair Work Commission involved UGL Rail Pty Ltd and the Rail, Tram and Bus Industry Union. The company sought approval of a proposed enterprise agreement, the UGL Spotswood Maintenance Centre Enterprise Agreement 2013-2016. The union contested the application on the basis that the agreement did not meet the legal standards for enterprise agreements under the Fair Work Act 2009.

The legal issues at the heart of this dispute were whether the agreement contained all the mandated terms and conditions required by the Fair Work Act, and whether the agreement had been made in accordance with the procedural requirements set out in the legislation. Specifically, the union argued that the agreement failed to address certain pay rates and did not comply with the procedural fairness requirements.

The Fair Work Commission carefully examined the proposed agreement and the process through which it was negotiated. The Commission found that the agreement did not meet all the mandatory terms and conditions required by the Act. In particular, the agreement did not specify the rates of pay for certain classifications of employees. Furthermore, the Commission determined that there had been procedural irregularities in the negotiation process, which did not meet the standards of procedural fairness. As a result, the application for approval was dismissed.

The Commission's decision was that the UGL Spotswood Maintenance Centre Enterprise Agreement 2013-2016 was not to be approved. The Commission required UGL Rail Pty Ltd to address the deficiencies in the agreement and to re-negotiate with the union to ensure compliance with the Fair Work Act. The union and the employer were directed to make best efforts to reach an agreement that met all legal requirements and to report back to the Commission.

UGL Rail Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established