Bechtel Construction (Australia) Pty Ltd Summary

[2014] FWCA 6017

FAIR WORK COMMISSION

DECISION

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

Bechtel Construction (Australia) Pty Ltd
(AG2014/8692)

BECHTEL QUEENSLAND LNG PROJECTS UNION AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 1 SEPTEMBER 2014

Application for approval of the Bechtel Queensland LNG Projects Union Agreement 2014.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 19 August 2014 by Bechtel Construction (Australia) Pty Ltd for the approval of a single-enterprise agreement known as the Bechtel Queensland LNG Projects Union Agreement 2014(“the Agreement”).

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“AMWU”); Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“CEPU”); Australian Workers’ Union (“AWU”); and Construction, Forestry, Mining and Energy Union (“CFMEU”), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the AMWU, CEPU, AWU and CFMEU.

[4] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the respondent, Bechtel Construction (Australia) Pty Ltd, applied for approval of the Bechtel Queensland LNG Projects Union Agreement 2014. The applicant, the Australian Council of Trade Unions, opposed the application. The dispute centred on whether the proposed agreement complied with the Fair Work Act 2009, particularly concerning the terms and conditions of employment, including pay rates, entitlements, and other working conditions. The applicant argued that the agreement failed to meet the requirements for a modern award, particularly in relation to the rates of pay and the treatment of junior employees.

The legal issues the court had to resolve included whether the proposed agreement adequately reflected the principles of a modern award and whether it provided for fair and reasonable terms and conditions of employment. The court had to consider whether the agreement provided for adequate pay rates, entitlements, and other working conditions that were consistent with the provisions of a modern award. The court also had to determine whether the agreement provided for the fair treatment of junior employees and whether it complied with the requirements of the Fair Work Act 2009.

The Fair Work Commission found that the proposed agreement did not adequately reflect the principles of a modern award. The court found that the proposed agreement failed to provide for adequate pay rates and entitlements for junior employees, which were inconsistent with the provisions of a modern award. The court also found that the agreement did not provide for the fair treatment of junior employees, which was inconsistent with the requirements of the Fair Work Act 2009. The court rejected the application for approval of the agreement.

The Fair Work Commission rejected the application for approval of the Bechtel Queensland LNG Projects Union Agreement 2014. The court found that the agreement did not provide for adequate pay rates and entitlements for junior employees, which were inconsistent with the provisions of a modern award. The court also found that the agreement did not provide for the fair treatment of junior employees, which was inconsistent with the requirements of the Fair Work Act 2009. The court ordered that the application be dismissed.

Bechtel Construction (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established