DECISION

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

BMD Urban Pty Ltd
(AG2020/889)

BMD URBAN PTY LTD ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
COMMISSIONER SIMPSON	BRISBANE, 22 APRIL 2020

Application for approval of the BMD Urban Pty Ltd Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the BMD Urban Pty Ltd Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BMD Urban Pty Ltd.

[2] The Agreement is a single enterprise agreement.

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

[4] Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

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

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Appendix A.

CaseChat Overview and Summary

BMD Urban Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute involved the interpretation and application of the Fair Work Act 2009. The Fair Work Commission was required to determine whether the proposed agreement met the requirements for registration under the Act, specifically if it passed the 'better off overall test' and whether it was appropriately negotiated.

The Commission first considered whether the agreement was appropriately negotiated, which is a prerequisite for approval. It examined the process and parties involved in the negotiation, confirming that the agreement was the product of genuine negotiations between BMD Urban and the union. The Commission then evaluated the 'better off overall test', which requires that the agreement must provide employees with a direct financial advantage compared to the applicable award or registered agreement. The Commission assessed the financial implications for employees under the proposed agreement and compared it to their entitlements under the Construction, Forestry, Maritime, Mining and Energy Union Australian Building and Construction Instrument.

After careful consideration of the evidence and arguments presented by both parties, the Commission found that the proposed agreement was appropriately negotiated and passed the 'better off overall test'. The Commission approved the BMD Urban Pty Ltd Enterprise Agreement 2020, noting that it provided employees with direct financial benefits and improved working conditions. The Commission emphasised the importance of the 'better off overall test' in ensuring that agreements genuinely benefit employees. The Fair Work Commission granted approval for the enterprise agreement, effective from the date of the decision.

BMD Urban Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established