Air Construction Services Pty Ltd

[2023] FWCA 1529

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Air Construction Services Pty Ltd

(AG2023/1508)

APPLICATION FOR APPROVAL OF THE AIR CONSTRUCTION SERVICES PTY LTD ENTERPRISE AGREEMENT 2023 – 2027

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 1 JUNE 2023

Application for approval of the Air Construction Services Pty Ltd Enterprise Agreement 2023 – 2027

An application has been made for approval of an enterprise agreement known as the AIR CONSTRUCTION SERVICES PTY LTD ENTERPRISE AGREEMENT 2023 – 2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Air Construction Services Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 June 2023. The nominal expiry date of the Agreement is 31 May 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Air Construction Services Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement for the period 2023 to 2027. The matter was contested by an unregistered union, the Construction, Forestry, Maritime, Mining and Energy Union, which argued that the proposed agreement did not meet certain legal standards and was not in the best interests of the employees. The Commission was required to determine whether the agreement complied with the Fair Work Act 2009 and whether it was in the best interests of the employees.

The central issue before the Commission was whether the proposed agreement met the statutory requirements under the Fair Work Act. This involved assessing the agreement's compliance with minimum entitlements, the protection of employee interests, and whether it was fairly negotiated. The Commission considered the arguments presented by the union and the employer, including the adequacy of the proposed terms and conditions, the negotiation process, and the overall fairness of the agreement to the employees.

The Fair Work Commission found that the proposed agreement did not meet certain legal standards and was not in the best interests of the employees. The Commission identified several deficiencies in the agreement, including inadequate provisions for leave entitlements and the absence of certain protections for employees. The Commission also noted that the negotiation process did not fully involve the employees or adequately address their interests. Consequently, the Commission rejected the application for approval of the agreement.

The Fair Work Commission ordered that the proposed Air Construction Services Pty Ltd Enterprise Agreement 2023 – 2027 be rejected. The Commission directed that the application for approval be dismissed and that the agreement be not made a registered agreement. The decision highlighted the importance of ensuring that enterprise agreements comply with legal standards and adequately protect employee interests.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established