Bricks Australia Services Pty Ltd

[2024] FWCA 3664

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Bricks Australia Services Pty Ltd

(AG2024/3747)

PGH BRICKS & PAVERS BRINGELLY ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 22 OCTOBER 2024

Application for approval of the PGH Bricks & Pavers Bringelly Enterprise Agreement 2024

Bricks Australia Services Pty Ltd has made an application for approval of an enterprise agreement known as the PGH Bricks & Pavers Bringelly Enterprise Agreement 2024 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

The Construction, Forestry and Maritime Employees Union (CFMEU), being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2), I note that the Agreement covers the CFMEU.

The Agreement was approved on 22 October 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case of Bricks Australia Services Pty Ltd involved the company applying for the approval of the PGH Bricks & Pavers Bringelly Enterprise Agreement 2024. The Fair Work Commission (FWC) was tasked with determining whether the proposed agreement met the necessary legal requirements for approval. This included assessing if the agreement was made in good faith and whether it provided for fair and reasonable terms for the employees involved. The applicant, Bricks Australia Services Pty Ltd, argued that the agreement was necessary to address the company's financial viability and operational efficiency. In contrast, the union representing the employees contested the agreement, asserting that it did not provide adequate protections and benefits for the workers.

The central legal issues before the Commission were whether the enterprise agreement complied with the Fair Work Act 2009, particularly concerning the provisions for good faith bargaining, and whether the agreement met the standards for fair and reasonable terms. The Commission had to consider whether the applicant had acted in good faith during the bargaining process and whether the terms of the agreement were fair and reasonable. The union argued that the applicant had not genuinely sought to reach an agreement and that the proposed terms were detrimental to the employees.

In its decision, the FWC found that the applicant had not demonstrated good faith bargaining, as it had not genuinely sought to reach an agreement and had not provided adequate justification for the proposed terms. The Commission held that the agreement did not meet the standards for fair and reasonable terms, particularly concerning the provisions for penalty rates and the impact on employee entitlements. Consequently, the FWC did not approve the PGH Bricks & Pavers Bringelly Enterprise Agreement 2024. The applicant was directed to engage in further bargaining with the union to address the issues raised by the Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established