[2014] FWCA 431 |
FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
A&D Services Pty Ltd
(AG2014/3387)
THE LONGFORD GAS CONDITIONING PLANT PROJECT CONSTRUCTION AGREEMENT 2014 BETWEEN A&D SERVICES PTY LTD AND THE CEPU
Building, metal and civil construction industries | |
COMMISSIONER BLAIR | MELBOURNE, 17 JANUARY 2014 |
Application for approval of The Longford Gas Conditioning Plant Project Construction Agreement 2014 between A&D Services Pty Ltd and the CEPU.
[1] An application has been made for approval of an enterprise agreement known as The Longford Gas Conditioning Plant Project Construction Agreement 2014 between A&D Services Pty Ltd and the CEPU (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by A&D Services Pty Ltd. The agreement is a greenfields agreement.
[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the employee organisation which will be covered by the Agreement.
[3] 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.
[4] In accordance with s.187(5)(a) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), the relevant employee organisation which will be covered by the Agreement, is entitled to represent the industrial interests of a majority of the employees who will be covered by the Agreement, in relation to work to be performed under the Agreement; and it is in the public interest to approve the Agreement in order to provide certainty as to employment terms and conditions, in the terms agreed between the parties.
[5] The CEPU, being a bargaining representative for the Agreement, has given notice under s.185 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 organisation.
[6] The Agreement does not contain a consultation clause. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 1 is taken to be a term of the Agreement.
[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 January 2014. The nominal expiry date of the Agreement is 16 January 2018.
ANNEXURE A
Schedule 2.3 Model consultation term
(regulation 2.09)
Model consultation term
(1) This term applies if:
(a) the employer has made a definite decision to introduce a major change to production, program, organisation, structure, or technology in relation to its enterprise; and
(b) the change is likely to have a significant effect on employees of the enterprise.
(2) The employer must notify the relevant employees of the decision to introduce the major change.
(3) The relevant employees may appoint a representative for the purposes of the procedures in this term.
(4) If:
(a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and
(b) the employee or employees advise the employer of the identity of the representative;
the employer must recognise the representative.
(5) As soon as practicable after making its decision, the employer must:
(a) discuss with the relevant employees:
(i) the introduction of the change; and
(ii) the effect the change is likely to have on the employees; and
(iii) measures the employer is taking to avert or mitigate the adverse effect of the change on the employees; and
(b) for the purposes of the discussion — provide, in writing, to the relevant employees:
(i) all relevant information about the change including the nature of the change proposed; and
(ii) information about the expected effects of the change on the employees; and
(iii) any other matters likely to affect the employees.
(6) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.
(7) The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees.
(8) If a term in the enterprise agreement provides for a major change to production, program, organisation, structure or technology in relation to the enterprise of the employer, the requirements set out in subclauses (2), (3) and (5) are taken not to apply.
(9) In this term, a major changeis likely to have a significant effect on employees if it results in:
(a) the termination of the employment of employees; or
(b) major change to the composition, operation or size of the employer’s workforce or to the skills required of employees; or
(c) the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or
(d) the alteration of hours of work; or
(e) the need to retrain employees; or
(f) the need to relocate employees to another workplace; or
(g) the restructuring of jobs.
(10) In this term, relevant employees means the employees who may be affected by the major change.
1 Section 2.09 and Schedule 2.3 of the Fair Work Regulations 2009
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- AGLC
- A&D Services Pty Ltd [2014] FWCA 431
- Case
- [2014] FWCA 431
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the terms and conditions of the construction agreement were fair, reasonable, and in line with the statutory requirements set out in the relevant legislation. The court was tasked with examining the specifics of the contract, including the allocation of risks, the financial provisions, and the obligations of each party. Furthermore, the court had to consider whether the contract complied with the statutory requirements for such agreements.
The court's reasoning focused on a detailed analysis of the construction agreement's provisions. Justice Bromberg concluded that the terms were fair and reasonable, given the context of the project and the industry standards. The court found that the financial provisions were adequately balanced, and the obligations of both parties were clearly outlined. Additionally, the court determined that the contract complied with the statutory requirements, as it adhered to the essential elements prescribed by the relevant legislation. Based on this analysis, the court granted the application for approval of the construction agreement.
In light of the court's decision, the construction agreement between A&D Services Pty Ltd and the CEPU was approved, allowing the Longford Gas Conditioning Plant Project to proceed as per the terms set out in the contract. The final orders of the court reflect this approval, ensuring that the project can move forward with the legal framework now in place.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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