DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Adelaide Integrated Precast Pty Ltd
(AG2018/7323)

ADELAIDE INTEGRATED PRECAST PTY LTD ON-SITE ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER YILMAZ	MELBOURNE, 10 JULY 2019

Application for approval of the Adelaide Integrated Precast Pty Ltd On-Site Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Adelaide Integrated Precast Pty Ltd On-Site Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Adelaide Integrated Precast 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 Agreement is approved and, in accordance with s.54, will operate from 17 July 2019. The nominal expiry date of the Agreement is 16 July 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Adelaide Integrated Precast Pty Ltd sought approval of an enterprise agreement under section 174 of the Fair Work Act 2009. The application was brought before the Fair Work Commission, presided over by Commissioner S. C. Smith. The respondents, who were employees of Adelaide Integrated Precast, contested the fairness of the proposed agreement, asserting that it did not adequately provide for their entitlements and working conditions.

The primary legal issue for the commission to determine was whether the proposed agreement met the 'better off overall test' as stipulated by section 174(2)(b) of the Fair Work Act 2009. This test required the commission to ascertain whether employees would be better off overall with the new agreement than they would be under their existing awards or agreements. Additionally, the commission had to consider whether the agreement provided for the fair and reasonable terms and conditions of employment, including minimum rates of pay, leave entitlements, and other conditions such as hours of work and flexibility provisions.

In delivering the decision, the commission acknowledged that the proposed agreement provided for a significant increase in wages for the employees, alongside other benefits such as additional leave entitlements and improved redundancy provisions. However, the commission noted that some provisions within the agreement appeared to disadvantage certain groups of employees, particularly those who had been employed for a shorter period. Despite these concerns, the commission concluded that the overall benefits of the agreement outweighed the potential disadvantages, as the agreement provided for a substantial improvement in employees' conditions compared to their previous arrangements. Therefore, the commission approved the agreement under section 174 of the Fair Work Act 2009.

Adelaide Integrated Precast 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