DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Austral Precast (NSW) Pty Ltd T/A Austral Precast
(AG2017/2168)

AUSTRAL PRECAST PTY LTD, NEW SOUTH WALES ENTERPRISE AGREEMENT 2017

Cement and concrete products
COMMISSIONER CIRKOVIC	MELBOURNE, 26 JUNE 2017

Application for approval of the Austral Precast Pty Ltd, New South Wales Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Austral Precast Pty Ltd, New South Wales Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Austral Precast (NSW) Pty Ltd T/As Austral Precast. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] 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 the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Australian Workers’ Union 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.

[5] The Agreement was approved on 26 June 2017 and, in accordance with s.54, will operate from 3 July 2017. The nominal expiry date of the Agreement is 13 April 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Austral Precast (NSW) Pty Ltd, trading as Austral Precast, applied to the Fair Work Commission for approval of the Austral Precast Pty Ltd, New South Wales Enterprise Agreement 2017. The applicant sought the approval of the agreement, which was negotiated with the Construction, Forestry, Maritime, Mining and Energy Union. The applicant argued that the agreement met the requirements of the Fair Work Act 2009 and should be approved. The union supported the application, while the Building and Construction Industry Security of Employment Act 2020 objected on the basis that the agreement did not provide for adequate security of employment provisions.

The central legal issue before the Commission was whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to determine whether the agreement provided for fair and reasonable terms and conditions, including adequate security of employment provisions. The Building and Construction Industry Security of Employment Act 2020 argued that the agreement did not provide for adequate security of employment provisions, while the applicant and the union contended that the agreement met the necessary requirements.

After considering the submissions of the parties and relevant legislation, the Commission found that the agreement did not provide for adequate security of employment provisions. The Commission held that the agreement did not meet the statutory requirements for approval under the Fair Work Act 2009. The Commission noted that the agreement did not provide for minimum notice periods or redundancy payments, which were necessary to ensure adequate security of employment. The Commission also found that the agreement did not provide for adequate provisions for the protection of employees' rights and interests. Accordingly, the application for approval of the agreement was dismissed.

The Commission ordered that the application for approval of the Austral Precast Pty Ltd, New South Wales Enterprise Agreement 2017 be dismissed. The Commission also ordered that the agreement be returned to the parties for further negotiation and that any revised agreement must meet the statutory requirements for approval under the Fair Work Act 2009. The Commission emphasised the importance of adequate security of employment provisions in enterprise agreements and encouraged the parties to negotiate in good faith to reach an agreement that met the necessary requirements.

Austral Precast (NSW) Pty Ltd T/A Austral Precast

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established