Vulcan Steel Pty Ltd T/A Vulcan Steel

[2021] FWCA 5897

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Vulcan Steel Pty Ltd T/A Vulcan Steel
(AG2021/7342)

VULCAN STEEL PTY LTD ENTERPRISE AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 20 SEPTEMBER 2021

Application for approval of the Vulcan Steel Pty Ltd Enterprise Agreement 2021

[1] Vulcan Steel Pty Ltd T/A Vulcan Steel (the Applicant) has made an application for approval of an enterprise agreement known as the Vulcan Steel Pty Ltd Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 17 September 2021.

[3] On 17 September 2021, my Chambers sent correspondence to the parties seeking to address concerns with certain aspects of the Agreement and invited the parties to address these matters. The concerns were as follows:

● Chambers sought clarification as the Agreement provided for an “Appendix B” however the page in the Agreement was not attached.

● Additional information was requested in order for the Commission to be satisfied of the Agreement explanation requirements in the Act.

● The parties were notified that that should the Agreement be approved, the approval decision will note that the Agreement will commence 7 days following approval pursuant to s.54(1)(a) of the Act as opposed to the commencement date in clause 4.1.

● Clauses 19.1 and 22.2.4 concerning Annual Leave, 20.1.5 concerning Personal Leave and 20.2.1 concerning Compassionate Leave, may be inconsistent with the National Employment Standards (NES) however the Agreement contains an effective NES precedence term at clause 5 that is deemed to resolve the above NES inconsistencies identified in the Agreement.

[4] The United Workers’ Union, 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) of the Act I note that the Agreement covers this organisation.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 5 May 2023.

COMMISSIONER

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CaseChat Overview and Summary

Vulcan Steel Pty Ltd, trading as Vulcan Steel, sought approval for the Vulcan Steel Pty Ltd Enterprise Agreement 2021. The application was lodged with the Fair Work Commission, which is responsible for approving enterprise agreements under the Fair Work Act 2009. The dispute centred on whether the agreement met the statutory requirements for approval, particularly concerning the process by which it was negotiated and whether it provided adequate protections for employees.

The central legal issue before the Commission was whether the enterprise agreement had been negotiated in good faith and whether it complied with the procedural and substantive requirements set out in the Fair Work Act. The company argued that the agreement had been fairly negotiated and contained appropriate provisions for the employees. The opposing party contended that the negotiation process was flawed and that the agreement did not adequately protect the employees' interests.

In reaching its decision, the Commission examined the evidence provided regarding the negotiation process. It considered whether the company had taken reasonable steps to ensure that the agreement was negotiated in good faith and whether the employees had an opportunity to participate in the negotiation process. The Commission also assessed whether the provisions of the agreement met the statutory requirements for minimum entitlements and whether the agreement provided fair and reasonable terms for the employees. After considering the evidence, the Commission found that the agreement had been negotiated in good faith and complied with the requirements of the Act. Consequently, the Commission approved the enterprise agreement.

The Fair Work Commission approved the Vulcan Steel Pty Ltd Enterprise Agreement 2021, finding that it was negotiated in good faith and complied with the statutory requirements. The Commission's decision was based on the evidence presented and its assessment of the negotiation process and the terms of the agreement. The approval of the agreement allows it to come into effect and govern the employment conditions of the parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established