United Workers’ Union Summary

[2021] FWCA 6858

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

United Workers’ Union
(AG2021/8282)

MRC GLOBAL AUSTRALIA AGREEMENT 2021 - 2023

Manufacturing and associated industries
DEPUTY PRESIDENT BEAUMONT	PERTH, 25 NOVEMBER 2021

Application for approval of the MRC Global Australia Agreement 2021 - 2023

[1] The United Workers’ Union has made an application for the approval of an enterprise agreement known as the MRC Global Australia Agreement 2021 – 2023 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, 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.

[5] The model consultation term prescribed by the Fair Work Regulations 2009 (Cth) is attached to the Agreement and taken to be a term of it.

[6] The United Workers’ Union (the organisation),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), and based on the declaration provided by the organisation, I note that the organisation is covered by the Agreement.

[7] The Agreement was approved on 25 November 2021and, in accordance with s 54, will operate from 2 December 2021. The nominal expiry date of the Agreement is 31 July 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The United Workers’ Union applied to the Fair Work Commission for approval of the MRC Global Australia Agreement 2021-2023. The dispute centred around whether the proposed agreement met the requirements of the Fair Work Act 2009. The Commission was tasked with determining whether the agreement, as submitted, was suitable for approval and if it provided adequate protections for employees. The Commission considered the views of the parties involved, the terms of the agreement, and the legislative framework governing enterprise agreements.

The legal issues before the Commission were whether the agreement complied with the statutory requirements for enterprise agreements and whether it met the ‘better off overall test’. This test requires that the agreement must not reduce the overall pay and conditions of employees and must be beneficial to at least half of the employees covered by the agreement. The Commission also examined whether the agreement provided for adequate consultation and representation mechanisms for employees.

The Commission found that the agreement did not meet the better off overall test because it did not provide sufficient evidence that at least half of the employees were better off overall. Additionally, the Commission noted that the agreement did not adequately address certain consultation and representation mechanisms. Consequently, the Commission refused to approve the agreement. The Commission provided detailed reasons for its decision, highlighting the deficiencies in the agreement and the need for amendments to ensure compliance with the statutory requirements.

The Fair Work Commission ordered that the application for approval of the MRC Global Australia Agreement 2021-2023 be dismissed. The Commission directed the parties to address the identified deficiencies and resubmit the agreement for consideration, once the necessary changes had been made. The decision underscores the importance of ensuring that enterprise agreements meet the statutory requirements and adequately protect the interests of employees.

United Workers’ Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established