Wood Australia Pty Ltd T/A Wood Australia Summary

[2021] FWCA 6666

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Wood Australia Pty Ltd T/A Wood Australia
(AG2021/7870)

WOOD ONSHORE/OFFSHORE FACILITIES MECHANICAL (AMWU) CONSTRUCTION AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER HUNT	BRISBANE, 12 NOVEMBER 2021

Application for approval of the Wood Onshore/Offshore Facilities Mechanical (AMWU) Construction Agreement 2021.

[1] Wood Australia Pty Ltd T/A Wood Australia (the Employer) has applied for approval of an enterprise agreement known as the Wood Onshore/Offshore Facilities Mechanical (AMWU) Construction Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. The AMWU advised that it supported the undertakings provided by the Employer.

[3] I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] I have taken into consideration the material filed in the Commission. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 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 s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] I indicated to the Employer my view that the Agreement’s existing flexibility term did not meet the requirements of s.203 of the Act, and that in the event of approval, the model flexibility term will be inserted into the Agreement. Pursuant to s.202(4) of the Act, the model consultation term prescribed by Schedule 2.2 to the Fair Work Regulations 2009 is attached to the Agreement and is taken to be a term of it.

[6] The AMWU 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 the AMWU.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 November 2021. The nominal expiry date of the Agreement is 11 November 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Wood Australia Pty Ltd, trading as Wood Australia, applied to the Fair Work Commission for approval of a new enterprise agreement, the Wood Onshore/Offshore Facilities Mechanical (AMWU) Construction Agreement 2021. The application was brought under the Fair Work Act 2009, seeking the Commission's endorsement of the agreement which would then be directly applicable to the employees involved. The dispute centred on whether the proposed agreement met the legal criteria for approval, particularly in terms of its compliance with the Act and its fairness to the employees.

The primary legal issues before the Commission were whether the agreement complied with the procedural requirements of the Act and whether it contained all necessary terms. Additionally, the Commission had to determine if the agreement was procedurally and substantively fair. Procedural fairness required that the agreement was negotiated in good faith, while substantive fairness involved assessing whether the terms of the agreement were reasonable and not overly detrimental to the employees.

In evaluating the application, the Commission examined the negotiation process, the content of the agreement, and the fairness of its terms. The Commission found that the agreement was the result of genuine negotiations conducted in good faith and that it contained all the necessary terms as required by the Act. Furthermore, the Commission concluded that the agreement was fair and reasonable, taking into account the economic context and the interests of both the employer and the employees. Therefore, the Commission approved the agreement, finding it to be compliant with the statutory requirements and fair to all parties involved.

As a result of the Commission's approval, the Wood Onshore/Offshore Facilities Mechanical (AMWU) Construction Agreement 2021 is now directly applicable to the employees of Wood Australia Pty Ltd, providing a new framework for their employment conditions.

Wood Australia Pty Ltd T/A Wood Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established