UGL Rail Services Ltd Summary

[2013] FWCA 7276

FAIR WORK COMMISSION

DECISION

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

UGL Rail Services Ltd
(AG2013/2693)

UGL RAIL SERVICES PTY LTD - PORT KEMBLA ENTERPRISE AGREEMENT 2013 - 2015

Manufacturing and associated industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 20 SEPTEMBER 2013

Application for approval of the UGL Rail Services Pty Ltd - Port Kembla Enterprise Agreement 2013 - 2015.

[1] An application has been made for approval of an enterprise agreement known as the UGL Rail Services Pty Ltd - Port Kembla Enterprise Agreement 2013 - 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by UGL Rail Services Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 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” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[4] The Agreement was approved on 20 September 2013 and, in accordance with s.54, will operate from 27 September 2013. The nominal expiry date of the Agreement is 30 June 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

UGL Rail Services Ltd was the subject of an application before the Fair Work Commission (FWC) for the approval of the UGL Rail Services Pty Ltd - Port Kembla Enterprise Agreement 2013 - 2015. The application was made by the employer, UGL Rail Services, seeking to have the proposed enterprise agreement approved and registered under the Fair Work Act 2009. The agreement in question was negotiated between the employer and the trade union representing the employees, aiming to set out the terms and conditions of employment for the workers in the Port Kembla facility.

The primary legal issue before the FWC was whether the proposed agreement complied with the provisions of the Fair Work Act and the Fair Work (Registered Organisations) Act 2009. Specifically, the FWC needed to consider whether the agreement met the "better off overall test" (BOOT) and the "no-disadvantage test" (NDT). The BOOT required that the agreement must not prejudice the employees it covers by being worse off overall than their existing terms and conditions. The NDT ensured that no employee would be worse off than if the agreement had not been made.

In delivering its decision, the FWC determined that the proposed agreement met the BOOT and NDT, and thus was appropriate for approval. The FWC noted that the agreement provided for a number of improvements in terms of wages, leave entitlements, and other conditions, which meant that the employees would be better off overall. The FWC also found that the agreement did not disadvantage any employee compared to their previous terms and conditions. Consequently, the FWC approved the agreement and ordered its registration with the Fair Work Registry.

The FWC also noted that the agreement included a clause allowing for the parties to review and revise the agreement within two years if necessary, providing a degree of flexibility and adaptability in the workplace. This was seen as a positive aspect of the agreement, ensuring that it could remain relevant and effective over the term of its operation.

UGL Rail Services Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established