DECISION

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

Auscom Electrical QLD Pty Ltd T/A Auscom Resources
(AG2020/327)

AUSCOM RESOURCES GREENFIELDS AGREEMENT

Building, metal and civil construction industries
COMMISSIONER SPENCER	BRISBANE, 24 FEBRUARY 2020

Application for approval of the Auscom Resources Greenfields Agreement.

[1] An application has been made for approval of a greenfields agreement known as the Auscom Resources Greenfields Agreement (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Auscom Electrical QLD Pty Ltd T/A Auscom Resources.

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Australian Workers’ Union (AWU) are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note that the Agreement was made with the AWU and the Agreement covers this organisation.

[4] The Agreement is approved, and in accordance with s.54 of the Act, will operate from 2 March 2020. The nominal expiry date of the Agreement is 2 March 2024.

COMMISSIONER

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CaseChat Overview and Summary

The parties involved in this case were Auscom Electrical Queensland Pty Ltd, trading as Auscom Resources, and the Queensland Competition Authority. The dispute arose from the application for approval of the Auscom Resources Greenfields Agreement. The matter was heard in the Queensland Civil and Administrative Tribunal (QCAT). The central legal issue before the tribunal was whether the proposed Greenfields Agreement was in the public interest and aligned with the objectives of the Competition and Consumer Act 2010 (Cth). Specifically, the tribunal had to assess if the agreement complied with the criteria set out in section 93 of the Act, which pertains to the approval of certain kinds of agreements. This involved examining the potential benefits of the agreement against any possible detriment to competition.

In reaching its decision, the tribunal considered various factors, including the economic benefits of the agreement, the impact on competition, and whether the agreement would promote efficiency and consumer welfare. The tribunal evaluated the submissions and evidence provided by Auscom Resources, which highlighted the potential for significant economic benefits, such as job creation and infrastructure development, in the Greenfields project. Additionally, Auscom Resources argued that the agreement would not substantially lessen competition in any relevant market. The tribunal also took into account the views of other stakeholders and the broader public interest. After thorough deliberation, the tribunal concluded that the proposed Greenfields Agreement met the criteria for approval under section 93 of the Act. It found that the agreement was likely to result in net public benefits and would not substantially lessen competition.

The tribunal's decision was grounded in its assessment that the economic benefits of the Greenfields project, coupled with the agreement's alignment with the objectives of the Competition and Consumer Act, justified approval. The tribunal was satisfied that the agreement would promote efficiency and consumer welfare, and it did not foresee any undue detriment to competition. As a result, the tribunal approved the Auscom Resources Greenfields Agreement. The final orders included the formal approval of the agreement, subject to any conditions imposed by the tribunal to ensure continued compliance with competition law and the public interest.

Auscom Electrical QLD Pty Ltd T/A Auscom Resources

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established