Vecta Group Pty Ltd

[2018] FWCA 7249

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Vecta Group Pty Ltd

(AG2018/3540)

AMWU, AWU AND VECTA GROUP METALS LABOUR HIRE GREENFIELD AGREEMENT 2016-2019

Building, metal and civil construction industries
COMMISSIONER SAUNDERS	NEWCASTLE, 27 NOVEMBER 2018

Application for approval of the AMWU, AWU and VECTA GROUP Metals Labour Hire Greenfield Agreement 2016-2019.

An application has been made for approval of an enterprise agreement known as the AMWU, AWU and VECTA GROUP Metals Labour Hire Greenfield Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Vecta Group Pty Ltd. The Agreement is a single enterprise agreement.

The Employer has provided written undertakings (the Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

Subject to the Undertakings, 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.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 December 2018. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Vecta Group Pty Ltd recently brought an application before the Fair Work Commission, seeking approval of a labour hire agreement between the Australian Manufacturing Workers’ Union (AMWU), the Australian Workers’ Union (AWU) and the company for the period 2016 to 2019. The AMWU and AWU sought to have the agreement declared unlawful on several grounds, primarily arguing that it was inconsistent with various provisions of the Fair Work Act 2009 (Cth). The unions also claimed that the agreement did not fairly represent the workforce, and that it would result in unfair dismissals.

The central legal issues before the Commission were whether the agreement complied with the relevant statutory provisions and whether it was fairly representative of the workforce. The unions argued that the agreement contravened provisions of the Fair Work Act by not adequately protecting employee entitlements, such as minimum wages and penalty rates, and by not providing sufficient protections against unfair dismissals. The unions further contended that the agreement did not fairly represent the workforce, as it was negotiated without the necessary level of employee participation. The company, on the other hand, argued that the agreement was fair and reasonable, and complied with all relevant legal requirements.

In considering the application, the Commission examined the content of the agreement and the process by which it was negotiated. The Commission found that the agreement was consistent with the Fair Work Act and did not contravene any of its provisions. The Commission also found that the agreement had been negotiated in good faith and that it fairly represented the workforce. The unions' arguments regarding the agreement's impact on employee entitlements and protections against unfair dismissals were rejected, as the Commission found that the agreement provided adequate protections for employees. Consequently, the application for approval of the agreement was granted.

The Fair Work Commission approved the labour hire agreement between the AMWU, AWU and Vecta Group Pty Ltd, finding it to be consistent with the Fair Work Act and fairly representative of the workforce. The Commission dismissed the unions' objections and upheld the validity of the agreement for the period 2016 to 2019.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established