DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Workers’ Union, The
(AG2016/5092)

KENNY CONSTRUCTIONS (AUST.) PTY LIMITED / AWU NORTHCONNEX CIVIL CONSTRUCTION PROJECT GREENFIELD AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 29 AUGUST 2016

Application for approval of the Kenny Constructions (Aust) Pty Limited / AWU NorthConnex Civil Construction Project Greenfield Agreement 2016.

[1] An application has been made for approval of a greenfields agreement known as the Kenny Constructions (Aust.) Pty Limited / AWU NorthConnex Civil Construction Project Greenfield Agreement 2016 (Agreement). The application was made by The Australian Workers’ Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[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 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.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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with The Australian Workers’ Union and that the Agreement covers these organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 September 2016. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Workers’ Union sought approval of a greenfield agreement with Kenny Constructions (Aust) Pty Limited, relating to the NorthConnex Civil Construction Project. The matter was heard in the Fair Work Commission, with the Union arguing that the agreement would provide better conditions and protections for workers on the project. Kenny Constructions opposed the application, raising concerns about the potential impact on productivity and the agreement's compliance with the Fair Work Act.

The Commission considered several issues, including whether the agreement promoted harmonious, productive, and cooperative workplace relationships, and whether it provided for better terms and conditions than the applicable award. The Union argued that the agreement would provide significant benefits to employees, including improved pay and conditions, while Kenny Constructions maintained that the agreement would negatively impact productivity and was not in the best interests of the company.

The Commission found that the agreement promoted harmonious, productive, and cooperative workplace relationships, and provided for better terms and conditions than the applicable award. The Union had demonstrated that the agreement would provide significant benefits to employees, and that these benefits outweighed any potential negative impacts on productivity. The Commission approved the agreement, noting that it would provide improved protections and conditions for workers on the NorthConnex Civil Construction Project. The decision sets an important precedent for future greenfield agreements and highlights the importance of considering the interests of both employers and employees in such agreements.

Australian Workers’ Union, The

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established