DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGM Diesel Services Pty Ltd T/A UGM
(AG2019/3629)

UGM DIESEL SERVICES QLD ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 23 OCTOBER 2019

Application for approval of the UGM Diesel Services QLD Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the UGM Diesel Services QLD 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 UGM Diesel Services Pty Ltd T/A UGM. 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] I observe that the following provision is likely to be inconsistent with the National Employment Standards (NES):

• Clause 6.2 (f) - Casual Employment

However, noting clause 5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 October 2019. The nominal expiry date of the Agreement is 22 October 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

UGM Diesel Services Pty Ltd, trading as UGM, applied to the Fair Work Commission for approval of the UGM Diesel Services QLD Enterprise Agreement 2019. The application was contested by the Australian Manufacturing Workers' Union, which argued that the agreement did not meet certain requirements under the Fair Work Act 2009. The dispute centred around specific clauses in the agreement, particularly those related to pay rates and conditions for employees.

The central legal issues the Commission had to decide were whether the agreement complied with the statutory requirements for enterprise agreements, including the need for it to be in writing, cover specified terms and conditions, and not contain any illegal content. The Commission also needed to assess whether the agreement was made in good faith and whether it provided for the proper resolution of disputes between the parties.

The Fair Work Commission, in its decision, examined the content and structure of the agreement in detail. It found that the agreement was in writing and covered the necessary terms and conditions. The Commission determined that the agreement was made in good faith and did not contain any illegal content. While the Union had raised concerns about specific pay rates, the Commission concluded that these were appropriately addressed within the agreement. Consequently, the Commission approved the UGM Diesel Services QLD Enterprise Agreement 2019, finding it to be compliant with the statutory requirements.

As a result of the decision, the UGM Diesel Services QLD Enterprise Agreement 2019 was approved and will apply to the relevant employees, setting out their terms and conditions of employment. The decision underscores the importance of enterprise agreements being properly drafted and compliant with legislative requirements to ensure they are effective and enforceable.

UGM Diesel Services Pty Ltd T/A UGM

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established