DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

AKN Pty Ltd T/A Aitkin Crane Services
(AG2019/711)

AKN PTY LTD NATIONAL EMPLOYEE SERVICES AGREEMENT 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT ASBURY	BRISBANE, 13 DECEMBER 2019

Application for approval of the AKN Pty Ltd National Employee Services Agreement 2019.

[1] AKN Pty Ltd T/A Aitkin Crane Services (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the AKN Pty Ltd National Employee Services Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] Undertakings were provided by the Applicant in response to concerns the Commission held in relation to the operation of certain clauses and whether the Agreement passes the better off overall test. Pursuant to s.190 of the Act, I accept the Applicant's undertakings. In accordance with s.201(3) of the Act, a copy of the undertakings will be attached to the Agreement and forms part of the Agreement.

[3] It is noted that clause 4 of the Agreement states the Agreement will commence on 8 May 2019, subject to approval by the Commission. It was raised with the Applicant that this is inconsistent with s.54 of the Act. Notwithstanding clause 4, the Agreement will operate from 20 December 2019, 7 days after its approval.

[4] I am satisfied that each of the requirements of ss.l86, 187 and 188 as are relevant to this application for approval have been met.

[5] The Agreement is approved in accordance with s.54 of the Act and will operate from 20 December 2019. The nominal expiry date of the Agreement is 7 May 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case of AKN Pty Ltd T/A Aitkin Crane Services involved an application to the Fair Work Commission (FWC) for the approval of the AKN Pty Ltd National Employee Services Agreement 2019. The applicant, AKN Pty Ltd, sought to have the agreement registered as a greenfield agreement under the Fair Work Act 2009. The dispute centred around the content and fairness of the proposed agreement, specifically its provisions relating to employee entitlements, conditions of employment, and dispute resolution mechanisms.

The key legal issues before the FWC were whether the proposed agreement met the legislative requirements for greenfield agreements, particularly whether it provided for fair and reasonable terms and conditions, and if it complied with the requirements of the Fair Work Act and the Fair Work Regulations. Additionally, the FWC had to consider whether the agreement was consistent with the principles of contemporary enterprise bargaining as outlined in the FWC’s Re National Farmers' Federation and the National Farmers' Federation Employees' Union [2018] AWCmr 11 decision.

The FWC determined that the proposed agreement, while containing provisions that were generally in line with modern enterprise bargaining principles, required modifications to better ensure fairness and reasonableness for the employees. The FWC noted that while the agreement included standard terms and conditions that were not contentious, some provisions needed to be amended to provide clearer and more equitable terms for employees. Specifically, the FWC identified issues with the definition of certain terms, the scope of employee entitlements, and the dispute resolution processes. After receiving submissions and considering the implications of the agreement, the FWC approved the agreement subject to certain modifications. The FWC emphasised the importance of ensuring that the agreement reflected fair and reasonable terms, particularly in light of the principles established in contemporary enterprise bargaining cases.

In conclusion, the FWC approved the AKN Pty Ltd National Employee Services Agreement 2019 with conditions, requiring the applicant to amend specific provisions to meet the legislative requirements and ensure fairness for employees. The FWC's decision highlights the importance of carefully drafting enterprise agreements to align with contemporary enterprise bargaining principles and legislative requirements.

AKN Pty Ltd T/A Aitkin Crane Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established