DECISION

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

Alder Constructions Pty Ltd
(AG2014/10221)

ALDER CONSTRUCTIONS PTY LTD ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 17 DECEMBER 2014

Application for approval of the Alder Constructions Pty Ltd Enterprise Agreement 2014.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 9 December 2014 by Alder Constructions Pty Ltd for the approval of a single-enterprise agreement known as the Alder Constructions Pty Ltd Enterprise Agreement 2014 (“the Agreement”).

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

[3] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Alder Constructions Pty Ltd, an employer, sought approval of the Alder Constructions Pty Ltd Enterprise Agreement 2014, with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), a union representing its employees. The Fair Work Commission (FWC) was tasked with determining whether the agreement was in the best interests of the employees and met the requirements of the Fair Work Act 2009 (Cth). The union argued that the agreement was fair and reasonable, while the employer contended that certain provisions were unfair and should be disregarded.

The primary legal issue was whether the agreement contained any provisions that were unfair and, if so, whether they could be severed from the agreement. The FWC had to consider the fairness of the provisions under section 234 of the Act, taking into account the overall fairness of the agreement, the nature of the enterprise, and the bargaining power of the parties. The FWC also had to consider whether the agreement met the good faith bargaining requirement under section 179 of the Act.

The FWC found that some provisions in the agreement were unfair, including provisions related to overtime payments and the classification of employees. However, the FWC also found that the overall fairness of the agreement was not compromised by these provisions and that the agreement met the good faith bargaining requirement. The FWC therefore approved the agreement with modifications to the provisions found to be unfair. The FWC also found that the employer had not acted in good faith during the bargaining process, but this did not affect the overall fairness of the agreement.

The FWC ordered that the Alder Constructions Pty Ltd Enterprise Agreement 2014 be approved with modifications to certain provisions, and that the employer pay a pecuniary penalty for its failure to act in good faith during the bargaining process. The union and the employer were directed to take all necessary steps to give effect to the approved agreement.

Alder Constructions 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