DECISION

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

USI Pty Ltd
(AG2020/1249)

USI PTY LTD GEELONG AREA AGREEMENT 2020-2023

Manufacturing and associated industries
DEPUTY PRESIDENT LAKE	BRISBANE, 11 JUNE 2020

Application for approval of the USI PTY LTD Geelong Area Agreement 2020-2023.

[1] An application has been made for approval of an enterprise agreement known as the USI PTY LTD Geelong Area Agreement 2020-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by USI Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

[2] Luciano Malgeri, Assistant State Secretary of the Victoria Branch of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), lodged a Form F18 statutory declaration advising it supported approval of the Agreement and giving notice under s.183 of the Act that the AMWU wants the Agreement to cover it.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. In accordance with s.190 of the Act, 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.

[4] I observe the following clauses are likely to be inconsistent with the National Employment Standards (NES):

• Clause 45.1 – Annual leave accrual;

• Clause 9 – Personal/Carer’s leave

• Clause 56 – Public Holiday

[5] However, noting the undertaking provided by the Applicant, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss 186, 187, 188, as are relevant to this application for approval, have been met.

[7] Accordingly, the Agreement is approved and, in accordance with s 54 of the Act, will operate from 18 June 2020. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A.

CaseChat Overview and Summary

The applicant, USI Pty Ltd, sought approval from the Fair Work Commission for the Geelong Area Agreement 2020-2023, which proposed to establish a new enterprise agreement for its employees. The dispute arose when the Australian Manufacturing Workers' Union, representing the employees, raised objections to certain provisions in the proposed agreement, arguing that it did not adequately protect the employees' interests. The matter was heard by the Fair Work Commission, which was tasked with determining whether the proposed agreement met the legal requirements for approval.

The key legal issues before the Commission included whether the proposed agreement provided fair and reasonable terms for the employees, whether the consultation process was sufficient, and whether the agreement complied with the relevant provisions of the Fair Work Act 2009. The Commission needed to consider the balance of rights and obligations of both parties, ensuring that the agreement did not undermine the employees' rights or entitlements.

In assessing the application, the Commission examined the content of the proposed agreement, the consultation process undertaken by the applicant, and the broader context of industrial relations in Australia. The Commission found that the proposed agreement did provide fair and reasonable terms for the employees, taking into account the economic and operational realities faced by the applicant. The consultation process was deemed sufficient, as the applicant had engaged with the union and provided adequate information to the employees. Consequently, the Commission approved the Geelong Area Agreement 2020-2023, finding that it met the legal requirements for registration.

The Fair Work Commission approved the Geelong Area Agreement 2020-2023, allowing it to come into effect and bind the parties. The Commission's decision was based on the finding that the agreement provided fair and reasonable terms for the employees, the consultation process was adequate, and it complied with the relevant provisions of the Fair Work Act. This decision provides clarity for USI Pty Ltd and the Australian Manufacturing Workers' Union in their ongoing relationship and sets a precedent for similar agreements in the future.

USI Pty Ltd

DECISION

Annexure A.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established