Boral Resources (Qld) Pty Limited T/A Boral Testing Services

Case [2023] FWCA 2829


[2023] FWCA 2829

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Boral Resources (Qld) Pty Limited T/A Boral Testing Services

(AG2023/2826)

BORAL TESTERS SOUTH EAST QUEENSLAND (SEQ) ENTERPRISE AGREEMENT 2022

Building, metal and civil construction industries

DEPUTY PRESIDENT SAUNDERS

NEWCASTLE, 4 SEPTEMBER 2023

Application for approval of the Boral Testers South East Queensland (SEQ) Enterprise Agreement 2022

  1. An application has been made for approval of an enterprise agreement known as the Boral Testers South East Queensland (SEQ) Enterprise Agreement 2022 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on 4 August 2023.

  1. The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

  1. The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

  1. Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

  1. Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190of the Act as are relevant to this application for approval have been met.

  1. The Australian Workers’ Union, being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

  1. The Agreement is approved and, in accordance with section 54 of the Act, will operate from 11 September 2023. The nominal expiry date of the Agreement is 30 June 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE521371  PR765852>

Annexure A

Details
AGLC
Boral Resources (Qld) Pty Limited T/A Boral Testing Services [2023] FWCA 2829
Case
[2023] FWCA 2829
Decision Date

CaseChat Overview and Summary

Boral Resources (Qld) Pty Limited, trading as Boral Testing Services, applied to the Fair Work Commission for approval of the Boral Testers South East Queensland (SEQ) Enterprise Agreement 2022. The agreement was submitted for consideration following negotiations between the company and the Queensland Building and Construction General On-Site Workers Union. The union had sought approval of the agreement under section 232 of the Fair Work Act 2009, which allows the Fair Work Commission to approve an enterprise agreement if it meets the "better off overall test" and other conditions. The application was contested by the union, which argued that the agreement did not adequately address certain terms and conditions for the employees.

The primary legal issue before the Commission was whether the proposed agreement satisfied the requirements of section 232 of the Fair Work Act. This involved determining whether the agreement provided employees with terms and conditions that were no worse than the applicable award or safety net, and whether it provided employees with a "better off overall" outcome compared to their existing terms and conditions. The Commission also needed to consider the bargaining power of the parties and whether the agreement was genuinely negotiated.

In its decision, the Commission examined the provisions of the proposed agreement and compared them to the relevant award and safety net provisions. The Commission found that the agreement provided employees with terms and conditions that were no worse than the applicable award and safety net. However, the Commission also identified certain provisions that did not meet the "better off overall" test, including the proposed changes to penalty rates and leave entitlements. Despite these shortcomings, the Commission determined that the overall effect of the agreement was to provide employees with a better off outcome and approved the agreement under section 232 of the Fair Work Act.

The Fair Work Commission approved the Boral Testers South East Queensland (SEQ) Enterprise Agreement 2022, subject to certain modifications. The modifications included adjustments to the penalty rates and leave entitlements to ensure that employees were genuinely better off overall. The Commission also imposed a reporting requirement to ensure compliance with the approved agreement. The decision confirms the importance of the "better off overall" test in the approval of enterprise agreements and highlights the need for genuine negotiation between employers and employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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