Application for approval of the K&R Fabrications (W'Gong) Pty Ltd (PortKembla Steelworks) Maintenance Enterprise Agreement 2025

[1] The decision concerns an application for approval of the K&R Fabrications (W'Gong) Pty Ltd (Port Kembla Steelworks) Maintenance Enterprise Agreement 2025 (the Agreement). The application has been made under section 185 of the Fair Work Act 2009 (the FW Act) by K&R Fabrications (W'Gong) Pty Ltd (the Applicant). The Agreement is a single enterprise agreement. The Fair Work Commission must approve the Agreement if the requirements in sections 186 and 187 of the FW Act are met.

[2] Section 186(2)(c) of the FW Act requires the Fair Work Commission to be satisfied that the terms of the Agreement do not contravene section 55 of the FW Act. In considering the application, I raised a concern with the Applicant, the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU), The Australian Workers' Union (AWU) and the other bargaining representatives regarding clauses 8.9 and 15.8 of the Agreement. Clause 8.9 deals with the recovery of monies owed in the event of an employee's employment being terminated for any reason. The concern being clause 8.9 appears to permit the employer to deduct employee entitlement that arise under the National Employment Standards, such as notice of termination, accrued and unused annual leave etc. Clause 15.8 deals with compassionate leave. The concern being that the circumstances by which compassionate leave may be taken in accordance with clause 15.8 are more confined that section 104(1)(b) and (c) of the FW Act. I sought confirmation as to whether the Applicant intended to rely upon clause 6A.1 of the Agreement, which can be best described as a NES precedence clause, to resolve any such concern or propose an undertaking. The Applicant confirmed that it intends to rely upon clause 2.8 of the Agreement. Based upon that confirmation from the Applicant, the requirement in section 186(2)(c) is satisfied.

[3] Based on the material provided by the Applicant, the AMWU, and the AWU, each of the other requirements of the FW Act that are relevant to this Agreement are satisfied.

[4] Section 201 of the FW Act requires the approval decision to note certain matters. The only such matter that is relevant to this application is section 201(2) of the FW Act. Both the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) and The Australian Workers' Union, (AWU) which were bargaining representatives for the Agreement, have given the Fair Work Commission a notice under section 183(1) of the FW Act that each of those employee organisations wants the Agreement to cover it. In accordance with section 201(2) of the FW Act, I note that the Agreement covers the AMWU and the AWU.

[5] The Agreement is approved and, in accordance with section 54 of the FW Act, it will operate from 1 August 2025. The nominal expiry date of the Agreement is 1 August 2028.

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