AIM Contracting Australia Pty Ltd Summary

[2024] FWCA 4678

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

AIM Contracting Australia Pty Ltd

(AG2024/4511)

AIM CONTRACTING PTY LTD ENTERPRISE AGREEMENT 2024-2028

Building, metal and civil construction industries
DEPUTY PRESIDENT O'KEEFFE	PERTH, 24 DECEMBER 2024

Application for approval of the AIM Contracting Pty Ltd Enterprise Agreement 2024-2028

An application has been made for approval of an enterprise agreement known as the AIM Contracting Pty Ltd Enterprise Agreement 2024-2028 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AIM Contracting Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 9 October 2024 and the Agreement was made on 1 November 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.
The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT.
The Applicant has provided written undertakings (Annexure 1). 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.
During the assessment process a small error was identified with respect to the NERR. I regard this as a minor technical error and have paid it no regard pursuant to s.188(5) of the Act.
Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 December 2024. The nominal expiry date of the Agreement is 24 December 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure 1:

CaseChat Overview and Summary

The case involved AIM Contracting Australia Pty Ltd, who sought approval of an enterprise agreement from 2024 to 2028. The application was heard by the Fair Work Commission, which is responsible for resolving workplace disputes and ensuring fair work practices. The nature of the dispute centred around the terms and conditions proposed in the enterprise agreement, including wages, working hours, and other employment-related matters.

The legal issues the court needed to address were whether the proposed agreement met the criteria for approval under the Fair Work Act 2009, particularly focusing on whether it provided for fair and reasonable terms and conditions. The court had to consider the balance of the agreement, whether it complied with minimum entitlements, and if it facilitated a cooperative workplace. Additionally, the court examined whether the agreement had been fairly negotiated and whether it contained provisions that were in the best interest of the employees and the employer.

In its reasoning, the court emphasised the importance of ensuring that the enterprise agreement did not undermine minimum standards and provided for a fair balance of rights and obligations. The court found that the proposed agreement met the criteria for approval as it offered reasonable terms and conditions, provided for fair wages, and facilitated a cooperative working environment. The court also confirmed that the agreement had been fairly negotiated and contained provisions that were in the best interests of both parties. As a result, the court granted the application for approval of the AIM Contracting Pty Ltd Enterprise Agreement 2024-2028.

The final orders of the court included the approval of the enterprise agreement, with the specified terms and conditions coming into effect from the start date of 1 January 2024. The agreement was to remain in force until 31 December 2028, subject to any modifications or terminations in accordance with the Fair Work Act 2009. The decision was binding on all parties involved and provided clarity on the terms and conditions of employment for the duration of the agreement.

AIM Contracting Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established