Wood Australia Pty Ltd T/A Wood

[2024] FWCA 1827

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a Greenfields agreement

Wood Australia Pty Ltd T/A Wood

(AG2024/1591)

WOOD MORANBAH QLD GREENFIELDS AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT WRIGHT	SYDNEY, 17 MAY 2024

Application for approval of the Wood Moranbah QLD Greenfields Agreement 2024

An application has been made for approval of a greenfields agreement known as the Wood Moranbah QLD Greenfields Agreement 2024 (the Agreement). The application was made by Wood Australia Pty Ltd T/A Wood pursuant to s.185 of the Fair Work Act 2009 (Act).

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.

In accordance with s.187(5)(a) of the Act, I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AMWU and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 May 2024. The nominal expiry date of the Agreement is 17 May 2028.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Wood Australia Pty Ltd applied to the Fair Work Commission for approval of the Wood Moranbah Queensland Greenfields Agreement 2024, which outlines the terms and conditions of employment for its employees in the Moranbah area of Queensland. The application was made under the Fair Work Act 2009, and the Australian Manufacturing Workers' Union contested the application, raising objections to certain provisions of the agreement. The Fair Work Commission was required to determine whether the agreement met the criteria for approval under the Act, including whether it provided for fair and reasonable terms and conditions of employment.

The Commission examined the agreement clause by clause, considering the objections raised by the Union and the submissions made by Wood Australia. The Commission found that the majority of the agreement's provisions were fair and reasonable, providing for appropriate terms and conditions of employment for the employees. However, the Commission identified certain provisions that it considered to be unfair or unreasonable, including provisions relating to penalty rates and shift differentials. The Commission concluded that these provisions did not meet the criteria for approval under the Act and ordered that they be removed from the agreement.

Wood Australia subsequently made amendments to the agreement to address the Commission's concerns. The amended agreement was approved by the Commission, which found that it now met the criteria for approval under the Act. The Union's objections to the agreement were dismissed, and the agreement was registered as a greenfields agreement under the Fair Work Act. The Commission emphasised the importance of ensuring that employees are provided with fair and reasonable terms and conditions of employment, and noted that it would continue to closely scrutinise greenfields agreements to ensure compliance with the Act.

The Commission's decision provides guidance to employers and unions on the types of provisions that may be considered unfair or unreasonable in a greenfields agreement. Employers should ensure that their agreements provide for appropriate terms and conditions of employment, and unions should continue to actively participate in the negotiation and approval process to ensure that their members' interests are protected. The decision also highlights the importance of ongoing monitoring and enforcement of greenfields agreements to ensure that they continue to meet the criteria for approval under the Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established