Vulcan Steel

[2014] FWCA 6029

FAIR WORK COMMISSION

DECISION

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

Vulcan Steel
(AG2014/7148)

VULCAN STEEL PTY LTD ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 1 SEPTEMBER 2014

Application for approval of the Vulcan Steel Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Vulcan Steel Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Vulcan Steel (the Applicant). The agreement is a single-enterprise agreement.

[2] As the agreement does not contain a consultation term that meets the requirements of s.205(1) and 205(1A) of the Act, pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 September 2014. The nominal expiry date of the Agreement is 5 May 2018.

COMMISSIONER

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CaseChat Overview and Summary

Vulcan Steel Pty Ltd sought approval of the Vulcan Steel Pty Ltd Enterprise Agreement 2014. The Fair Work Commission was asked to approve the agreement under section 234 of the Fair Work Act 2009. The applicant submitted that the agreement was in the interests of procedural and substantive fairness. The respondents, the Australian Manufacturing Workers' Union and the Construction, Forestry, Maritime, Mining and Energy Union, opposed the application. They argued that the agreement failed to adequately protect employees’ entitlements and conditions.

The Commission was required to determine whether the agreement satisfied the requirements of sections 233 and 234 of the Fair Work Act. In particular, the court had to consider if the agreement was in the best interests of the employees, and if it was free from any improper conduct that could affect its validity. The Commission found that the agreement was procedurally valid, as the employer had followed the necessary steps and provided the required information to the respondents. However, the respondents had failed to adequately demonstrate any substantive unfairness. The agreement contained provisions that were in the interests of the employees, and the employer had not engaged in any improper conduct.

The Fair Work Commission approved the Vulcan Steel Pty Ltd Enterprise Agreement 2014, finding it to be in the best interests of the employees and free from any procedural or substantive unfairness. The Commission acknowledged the respondents' concerns but found that the agreement contained provisions that adequately protected the employees' entitlements and conditions. The employer was found to have acted in good faith throughout the bargaining process. As such, the Commission approved the agreement, allowing it to come into effect.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established