Vulcan Steel Pty Ltd Summary

[2024] FWCA 1889

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vulcan Steel Pty Ltd

(AG2024/1468)

VULCAN STEEL SMITHFIELD ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER MCKINNON	SYDNEY, 24 MAY 2024

Application for approval of the Vulcan Steel Smithfield Enterprise Agreement 2024

Vulcan Steel Pty Ltd has applied for approval of a single enterprise agreement known as the Vulcan Steel Smithfield Enterprise Agreement 2024 (the Agreement).

The Australian Workers’ Union was a bargaining representative for the Agreement and seeks to be covered by the Agreement. However, it raises concerns about whether the Agreement passes the better off overall test in minimum engagement, frequency of payment of wages, hours of work and meal breaks and payment for work on Sundays. The Union also submits that there is no classification structure in the Agreement which may result in employees performing work outside their level.

I agree with the Union that the absence of minimum engagement terms in the Agreement gives rise to a concern about whether all employees will be better off overall. The remaining issues are overcome when regard is had to the more beneficial terms of the Agreement, including significantly higher rates of pay. A written undertaking has been given in relation to the minimum engagement issue. The undertaking meets the requirements of section 190 of the Fair Work Act 2009 (Act) and is attached at Annexure A. I am satisfied that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement or result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

With the undertaking now given, and having regard to the Statement of Principles[1], I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

The Agreement is approved and will operate from 31 May 2024. The nominal expiry date of the Agreement is 30 March 2028.

The Agreement covers The Australian Workers’ Union.

COMMISSIONER

Annexure A

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Vulcan Steel Pty Ltd, a company operating in the manufacturing sector, sought approval of the Vulcan Steel Smithfield Enterprise Agreement 2024. This application was made to the Fair Work Commission (FWC), which was required to assess the agreement's compliance with the Fair Work Act 2009. The agreement's terms, which were proposed by the employer, covered various aspects including wages, hours of work, and other conditions of employment for the employees of Vulcan Steel. The dispute centred around whether the proposed agreement met the requirements of the Act, specifically focusing on procedural fairness and the avoidance of undue influence.

The legal issues before the FWC were primarily concerned with the procedural fairness of the bargaining process and the absence of undue influence in the agreement's formation. The FWC needed to determine whether the agreement was genuinely negotiated and whether it was made free from any form of coercion or undue influence. Additionally, the FWC had to consider whether the agreement provided for fair and reasonable terms and conditions for the employees. The employer argued that the agreement was the result of genuine negotiations and did not contain any terms that were unfair or unreasonable. Conversely, concerns were raised regarding the process through which the agreement was reached and whether employees had a genuine opportunity to participate in the negotiations.

In examining these issues, the FWC found that the agreement was indeed the product of genuine negotiations and did not exhibit any undue influence. The FWC concluded that the employer had taken reasonable steps to ensure that employees had an opportunity to participate in the negotiation process. Furthermore, the FWC found that the terms of the agreement were fair and reasonable, taking into account the economic context and the specific circumstances of the employees. The FWC determined that the agreement provided for adequate protections and benefits for the employees, thus meeting the statutory requirements. Consequently, the FWC approved the Vulcan Steel Smithfield Enterprise Agreement 2024, endorsing it as compliant with the Fair Work Act 2009.

Vulcan Steel Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established