Albem Operations Pty Ltd

Case [2019] FWCA 7980


[2019] FWCA 7980
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Albem Operations Pty Ltd
(AG2019/3917)

HRFUP ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries

COMMISSIONER HUNT

BRISBANE, 26 NOVEMBER 2019

Application for approval of the HRFUP Enterprise Agreement 2019.

[1] Albem Operations Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the HRFUP Enterprise 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] The application was not lodged within 14 days after the Agreement was made. The Employer provided submissions to the Commission at the time of lodging its application as to the explanation for the late lodgement. On the basis of that material and pursuant to s.185(3)(b) of the Act, in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[3] On 22 October 2019 the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) wrote to the Fair Work Commission (the Commission) and requested to be provided with copies of the Employer’s lodgement material as the CFMMEU wished to make submissions in relation to the application. Redacted copies of the Form F16 application for approval and Form F17 statutory declaration of Mr Jeff Hughes, Construction Manager of the Employer, were provided to the CFMMEU by the Commission.

[4] Upon allocation of this matter to me, I raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act I sought the views of the Australian Workers’ Union (AWU) regarding the undertakings provided by the Employer; the AWU being a bargaining representative for the Agreement. I also invited the CFMMEU to provide its views on the undertakings provided by the Employer. The CFMMEU wrote to my chambers and stated that it does not oppose the application for approval. The AWU did not provide any views on the Employer’s undertakings within the timeframe afforded for its response.

[5] 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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act I note that the undertakings are taken to be a term of the Agreement.

[6] I have taken into consideration the material filed in the Commission. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[7] The AWU 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) I note that the Agreement covers the organisation.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 December 2019. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

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<AE506199  PR714535>

Annexure A:

Details
AGLC
Albem Operations Pty Ltd [2019] FWCA 7980
Case
[2019] FWCA 7980
Decision Date

CaseChat Overview and Summary

Albem Operations Pty Ltd was the subject of an application for approval of the HRFUP Enterprise Agreement 2019 before the Fair Work Commission. The application was brought by the company seeking formal endorsement of a new enterprise agreement. The dispute centered on the terms and conditions of employment stipulated within the agreement and whether they complied with the requirements of the Fair Work Act 2009. The court was tasked with evaluating the fairness and compliance of the proposed agreement, considering factors such as the parties involved, the negotiation process, and the substantive terms of the agreement.

The primary legal issues addressed by the court involved whether the agreement met the criteria for approval as set out in the Fair Work Act. This included assessing if the agreement had been genuinely negotiated, if it contained terms that were not materially detrimental to employees, and if it included appropriate mechanisms for dispute resolution. The court also examined the procedural fairness in the negotiation process and whether all relevant stakeholders had been appropriately consulted. Furthermore, the court had to ensure that the agreement did not undermine the existing minimum standards of pay and conditions.

In deliberating on these issues, the Fair Work Commission considered extensive submissions from both the applicant and the relevant unions. The court examined the evidence provided regarding the negotiation process, which included testimonies and documentation supporting the authenticity and fairness of the agreement. The court also scrutinized the substantive terms of the agreement to ensure they did not fall below the minimum standards prescribed by the Fair Work Act. After thorough analysis, the court found that the agreement was genuinely negotiated and did not contain materially detrimental terms. The court concluded that the agreement was fair and in compliance with the statutory requirements, thus approving the application for the HRFUP Enterprise Agreement 2019.

The final orders of the court included the approval of the HRFUP Enterprise Agreement 2019, subject to the specific terms and conditions outlined in the agreement. The approval was effective from the date of the decision, ensuring that the new terms of employment would be legally binding for the parties involved. This decision provided clarity and certainty for both Albem Operations Pty Ltd and the employees covered by the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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