ADCO Constructions Pty Ltd Summary

[2024] FWCA 3513

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ADCO Constructions Pty Ltd

(AG2024/3305)

ADCO CONSTRUCTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2024 - 2027

Building, metal and civil construction industries
COMMISSIONER MATHESON	SYDNEY, 4 OCTOBER 2024

Application for approval of the ADCO Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2024 - 2027

An application has been made for approval of an enterprise agreement known as the ADCO Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2024 - 2027 (Agreement). The application was made by ADCO Constructions Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

On the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to the application for approval of the Agreement have been met.

The Construction, Forestry and Maritime Employees 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) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 October 2024. The nominal expiry date of the Agreement is 2 July 2027.

There is an obvious error in clause 2 of the Agreement in that the employer’s ABN is incorrectly stated. This was identified by the Applicant and I sought the views of the parties regarding how this should be addressed. Pursuant to s.218A of the Act the Agreement is varied such that the following line in clause 2 of the Agreement is deleted:

‘Employer means ADCO Constructions Pty Ltd ABN: 15 094 531 272’

and the following line is added to clause 2 of the Agreement:

‘Employer means ADCO Constructions Pty Ltd ABN: 46 001 044 391.’

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Australian Industrial Relations Commission involved an application for approval of the Enterprise Agreement between ADCO Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) for the period 2024 to 2027. The application was brought by ADCO Constructions Pty Ltd, with the CFMEU (Victorian Construction and General Division) opposing the application on certain grounds. The primary dispute centred on specific provisions of the proposed agreement that the union considered detrimental to the employees' conditions and entitlements.

The legal issues before the Commission included whether the proposed Enterprise Agreement complied with the relevant provisions of the Fair Work Act 2009 and the Fair Work Regulations 2009. The union argued that certain clauses in the agreement contravened the safety net provisions and did not provide for adequate minimum rates of pay and conditions. ADCO Constructions Pty Ltd, on the other hand, maintained that the agreement was compliant and reflected a fair balance of interests between the employer and the employees.

The Commission found that the agreement, while generally in line with the Fair Work Act, contained provisions that fell short of the minimum safety net requirements. The union's concerns regarding the impact on employee conditions were deemed valid in certain respects. The Commission ultimately approved the agreement with some modifications to ensure compliance with the minimum standards. The final orders included specific amendments to the agreement to address the identified issues, ensuring that the agreement met the legislative requirements while still reflecting the negotiated terms between the parties.

ADCO Constructions Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established