UGL Rail Pty Ltd Summary

[2013] FWCA 2992

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Rail Pty Ltd
(AG2013/6290)

UGL RAIL PTY LTD BALLARAT ENTERPRISE AGREEMENT 2013-2015

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 14 MAY 2013

Application for approval of the UGL Rail Pty Ltd Ballarat Enterprise Agreement 2013-2015.

[1] An application has been made for approval of an enterprise agreement known as the UGL Rail Pty Ltd Ballarat Enterprise Agreement 2013-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made 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 Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU), the Australian Rail, Tram and Bus Industry Union (ARTBIU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover their organisation. As required by s.201(2) I note that the Agreement covers those organisations.

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 21 May 2013. The nominal expiry date of the Agreement is 31 December 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, UGL Rail Pty Ltd applied for the approval of the UGL Rail Pty Ltd Ballarat Enterprise Agreement 2013-2015. The agreement was a proposed enterprise agreement between UGL Rail and its employees, which sought to regulate their employment terms and conditions. The application came before the Fair Work Commission, which has the jurisdiction to approve such agreements if they meet certain criteria under the Fair Work Act 2009.

The primary legal issues for the Commission to decide were whether the agreement had been made in accordance with the procedural requirements set out in the Act and whether the agreement was fair and reasonable. The procedural requirements included ensuring that the agreement was made without coercion, duress, or harassment and that employees had an opportunity to discuss the agreement and vote on it. The fairness and reasonableness of the agreement involved considering factors such as whether it provided for fair and reasonable terms and conditions of employment and whether it complied with the "better off overall test," which required that employees be no worse off financially under the agreement than they would have been under the applicable award or registered agreement.

The Commission found that the agreement had been made in accordance with the procedural requirements and that it was fair and reasonable. It noted that the agreement had been negotiated in good faith and that employees had been given an adequate opportunity to discuss and vote on it. The Commission also found that the agreement provided for fair and reasonable terms and conditions of employment, including provisions for wages, leave, and other benefits. In relation to the better off overall test, the Commission found that employees would be better off overall under the agreement than they would have been under the applicable award. The Commission approved the agreement, and it came into effect on 1 July 2013.

The Commission's decision to approve the UGL Rail Pty Ltd Ballarat Enterprise Agreement 2013-2015 provides guidance for employers and employees seeking to negotiate and enter into enterprise agreements. It confirms that the Fair Work Commission will closely scrutinise the procedural requirements and the fairness and reasonableness of any proposed agreement, but that agreements that meet these criteria will be approved. The decision also highlights the importance of good faith negotiation and the need for employers to provide employees with an adequate opportunity to discuss and vote on any proposed agreement.

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