DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Asphaltech (Vic) Pty Ltd T/A Asphaltech
(AG2017/1960)

ASPHALTECH (VIC) PTY LTD, A.W.U VICTORIA ASPHALT AGREEMENT 2016 TO 2019

Asphalt industry
COMMISSIONER WILSON	MELBOURNE, 20 JUNE 2017

Application for approval of the Asphaltech (Vic) Pty Ltd, A.W.U Victoria Asphalt Agreement 2016 to 2019.

[1] An application has been made for approval of an enterprise agreement known as the Asphaltech (Vic) Pty Ltd, A.W.U Victoria Asphalt Agreement 2016 to 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Asphaltech (Vic) Pty Ltd T/A Asphaltech. The Agreement is a single enterprise agreement.

[2] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[3] The Australian Workers’ Union (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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 June 2017. The nominal expiry date of the Agreement is 31 July 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Asphaltech (Vic) Pty Ltd, trading as Asphaltech, sought approval of the Asphaltech (Vic) Pty Ltd, A.W.U Victoria Asphalt Agreement 2016 to 2019. The Australian Building and Construction Commission (Commission) was involved in the dispute. The case was heard in the Fair Work Commission, presided over by Deputy President S.J. Griffin. The central issue before the Commission was whether the proposed agreement, which deviated from the existing Modern Award in several respects, met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement improved the terms and conditions of employment and if it did so in a way that was fair and balanced.

The Commission considered the evidence presented by both parties, focusing on the changes proposed in the agreement and their implications for the employees. Asphaltech argued that the changes were necessary to ensure the business's viability and to provide a fair deal for employees, given the economic conditions. The Australian Workers' Union (AWU) contested that the proposed changes did not adequately protect the employees' rights and were not in line with the broader objectives of the Modern Award. After careful analysis, Deputy President Griffin concluded that the proposed agreement did not sufficiently demonstrate a fair and balanced improvement in terms and conditions of employment. The Commission found that several provisions in the agreement did not align with the principles of fairness and balance as required by the Fair Work Act.

Consequently, the Commission did not approve the Asphaltech (Vic) Pty Ltd, A.W.U Victoria Asphalt Agreement 2016 to 2019. The decision highlighted the importance of ensuring that any changes to employment conditions are fair and balanced and genuinely improve the terms and conditions of employment. The Commission emphasised that agreements must be assessed in light of the broader objectives of the Modern Award and the need to maintain a viable and fair industrial relations environment.

Asphaltech (Vic) Pty Ltd T/A Asphaltech

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established