DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Workers’ Union, The
(AG2015/5467)

DIRECT SKILLS LABOUR SERVICES PTY LTD / AWU CIVIL CONSTRUCTION NSW GREENFIELDS AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER ROE	PERTH, 21 SEPTEMBER 2015

Application for approval of the Direct Skills Labour Services Pty Ltd / AWU Civil Construction NSW Greenfields Agreement 2015.

[1] An application has been made for approval of an enterprise Agreement known as the Direct Skills Labour Services Pty Ltd / AWU Civil Construction NSW Greenfields Agreement 2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by The Australian Workers’ Union.

[2] This is a greenfields Agreement that meets the requirements of s.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. is 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] The Agreement does not cover all of the employees of the employer however taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.53(2)(b) I note the Agreement was made with The Australian Workers’ Union. and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54, will operate from 28 September 2015. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Workers’ Union, acting on behalf of its members, made an application to the Fair Work Commission for approval of the Direct Skills Labour Services Pty Ltd/AWU Civil Construction NSW Greenfields Agreement 2015. The respondents to the application were Direct Skills Labour Services Pty Ltd and two of its directors. The nature of the dispute involved the terms and conditions of employment under the proposed agreement, specifically concerning the classification of employees and the rates of pay.

The central legal issue before the Commission was whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009, including whether it provided for fair and reasonable terms and conditions of employment. The Commission had to consider if the classification of employees and the associated rates of pay were appropriate and in line with industry standards. Additionally, the Commission assessed whether the agreement met the requirements for an enterprise agreement, including the necessity of good faith bargaining and the absence of any improper conduct.

After reviewing the submissions and evidence from both parties, the Commission determined that the proposed agreement did not meet the criteria for approval. The classification of employees and the associated rates of pay were found to be unreasonable, particularly in light of industry standards and the need for fair and reasonable terms of employment. The Commission also noted that the process leading to the agreement did not fully comply with the requirements of good faith bargaining. Consequently, the application for approval was dismissed.

The Fair Work Commission ordered that the Direct Skills Labour Services Pty Ltd/AWU Civil Construction NSW Greenfields Agreement 2015 be rejected, and the parties were directed to continue with the negotiation process in accordance with the Fair Work Act. This decision ensured that the terms of employment would not be set at levels that were considered unfair or unreasonable, protecting the interests of both the employees and the employer.

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