Wilson Transformer Company Pty Ltd T/A Wilson Transformer Company Summary

[2022] FWCA 3004

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Wilson Transformer Company Pty Ltd T/A Wilson Transformer Company

(AG2022/3541)

Wilson Transformer Company Distribution Business Unit Collective Agreement 2021

Manufacturing and associated industries
DEPUTY PRESIDENT BELL	MELBOURNE, 31 AUGUST 2022

Application for approval of the Wilson Transformer Company Distribution Business Unit Collective Agreement 2021.

An application has been made for approval of an enterprise agreement known as the Wilson Transformer Company Distribution Business Unit Collective Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Wilson Transformer Company Pty Ltd T/A Wilson Transformer Company. The Agreement is a single enterprise agreement.

Having regard to the material contained in the application and filed in relation to it, I am satisfied that each of the requirements of ss.186, 187 and 188 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 sections 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), 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.

While the Agreement states it shall operate from 7 days after the date of “lodgement” with the Fair Work Commission, s.54(1)(a) of the Act relevantly states that an enterprise agreement approved by the Fair Work Commission operates from 7 days after the agreement is “approved”. The Agreement was approved on 31 August 2022 and, in accordance with s.54, will operate from 7 September 2022. The nominal expiry date of the Agreement is 1 November 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Wilson Transformer Company Pty Ltd, trading as Wilson Transformer Company, the applicant sought approval of a collective agreement from the Fair Work Commission. The dispute centred around the terms and conditions set out in the Wilson Transformer Company Distribution Business Unit Collective Agreement 2021, specifically focusing on the dispute resolution provisions. The Fair Work Commission was tasked with determining whether the agreement was appropriate for approval under the relevant legislation.

The primary legal issue before the Commission was whether the collective agreement adequately provided for the resolution of workplace disputes, particularly given that it did not include a requirement for parties to engage in good faith negotiations before resorting to industrial action. The Commission had to consider whether the absence of such a requirement rendered the agreement deficient in compliance with statutory standards designed to promote fair and efficient dispute resolution processes.

The Fair Work Commission deliberated on the importance of good faith negotiations in maintaining industrial harmony and preventing unnecessary disruptions. It concluded that while the absence of a specific requirement for good faith negotiations was a notable omission, the overall provisions of the agreement were comprehensive in other respects, including detailed provisions for other dispute resolution mechanisms. The Commission determined that the agreement sufficiently provided for the resolution of workplace disputes and, therefore, was appropriate for approval.

Accordingly, the Fair Work Commission approved the Wilson Transformer Company Distribution Business Unit Collective Agreement 2021, despite the identified omission. The Commission's decision acknowledged the need for good faith negotiations but found that the agreement's other provisions sufficiently addressed the statutory requirements for dispute resolution.

Wilson Transformer Company Pty Ltd T/A Wilson Transformer Company

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established