DECISION

Fair Work Act 2009
s.185—Enterprise agreement

A.H. Beard Pty Ltd
(AG2018/7054)

A.H. BEARD PTY LTD ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 18 APRIL 2019

Application for approval of the A. H. Beard Pty Ltd Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the A.H. Beard Pty Ltd Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by A.H. Beard Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Construction, Forestry, Maritime, Mining and Energy Union 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) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54, will operate from 25 April 2019. The nominal expiry date of the Agreement is 1 November 2020.

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for approval of the A. H. Beard Pty Ltd Enterprise Agreement 2017. A.H. Beard Pty Ltd, the employer, sought approval for the agreement which was to govern the employment conditions of its workers. The Australian Council of Trade Unions, representing the employees, contested the application on several grounds, arguing that the agreement did not meet the necessary standards for approval under the Fair Work Act 2009.

The central legal issues before the Commission included whether the agreement provided for minimum terms and conditions of employment as required by the Act, whether it was free from prohibited content, and if it was negotiated in good faith. The employer argued that the agreement was comprehensive, fair, and negotiated properly. The union, on the other hand, contended that the agreement failed to meet the statutory standards and contained terms that were unfair or potentially detrimental to employees.

The Fair Work Commission carefully reviewed the submissions from both parties and the contents of the agreement. It found that while the agreement contained some provisions that were acceptable, there were significant issues regarding the negotiation process and certain terms that did not comply with the requirements of the Act. The Commission held that the employer had not demonstrated that the agreement was negotiated in good faith, and some of the provisions were not in the best interests of the employees. Consequently, the application for approval was dismissed.

The Commission ordered that the agreement not be approved and directed the parties to further negotiations to address the identified issues. It emphasised the importance of good faith negotiations and compliance with the statutory standards in future agreements.

A.H. Beard Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established