DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Burton Contractors Pty Ltd
(AG2018/6477)

BURTON CONTRACTORS PTY LTD ENTERPRISE AGREEMENT 2018 - 2022

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 12 APRIL 2019

Application for approval of the Burton Contractors Pty Ltd Enterprise Agreement 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the Burton Contractors Pty Ltd Enterprise Agreement 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Burton Contractors Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Agreement was approved on 12 April 2019 and, in accordance with s.54, will operate from 19 April 2019. The nominal expiry date of the Agreement is 18 April 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Burton Contractors 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 union argued that the proposed agreement contained terms that were contrary to public policy, including provisions that allowed for the termination of employment without cause and reduced access to dispute resolution mechanisms. The Fair Work Commission was required to determine whether the proposed agreement was in compliance with the Fair Work Act 2009 and whether it was in the best interests of the employees.

The Fair Work Commission found that the proposed agreement was not in compliance with the Fair Work Act 2009 as it contained terms that were contrary to public policy. The Commission noted that the agreement allowed for the termination of employment without cause, which was not permissible under the Act. The Commission also found that the reduced access to dispute resolution mechanisms was not in the best interests of the employees. The Commission determined that the proposed agreement was not fair and equitable and therefore could not be approved.

The Fair Work Commission refused to approve the proposed agreement. The Commission ordered that the agreement be returned to the parties for further negotiation and that any subsequent agreement must comply with the Fair Work Act 2009 and be in the best interests of the employees. The Commission also ordered that Burton Contractors Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union must make further efforts to negotiate a fair and equitable agreement.

Burton Contractors 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