Construction, Forestry, Maritime, Mining and Energy Union v Mechanical Maintenance Solutions Pty Ltd
Citation: [2022] FCAFC 15
At a glance
- Employees affected
- 5
What happened
Mechanical Maintenance Solutions applied to the Fair Work Commission to approve the MMS Latrobe Valley Enterprise Agreement 2018, which would replace two existing greenfields agreements. Five employees were covered. the Respondent's consultant explained the agreement to employees verbally but not in writing and did not directly explain all material differences between the new agreement and the existing agreements. The Commission approved the agreement. Three unions applied for judicial review, arguing the Commission erred in finding that 'all reasonable steps' had been taken to explain the agreement as required by s 180(5) of the Fair Work Act.
What was decided
A Full Court of the Federal Court allowed the application for judicial review and quashed the Commission's approval decision. The court found the Commission erred by not identifying a specific deficiency: there was no evidence that material and significant differences between the new agreement and existing agreements had been explained to employees. The explanations given did not satisfy the statutory requirement.
What it means for employers
When seeking to approve a new enterprise agreement, employers must ensure employees receive detailed written explanations of all material differences between the new agreement and existing agreements. Verbal explanations alone may not satisfy statutory requirements.
What it means for employees
You have the right to detailed explanations of how a proposed enterprise agreement differs from existing agreements before being asked to approve it. These explanations should be provided in writing and should address all material differences.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2022/2022fcafc0015Want more cases like this?
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →