DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Burton Contractors Pty Ltd
(AG2016/915)

BURTON CONTRACTORS PTY LTD ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	SYDNEY, 20 MAY 2016

Burton Contractors Pty Ltd Enterprise Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the Burton Contractors Pty Ltd Enterprise Agreement 2016-2018 (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] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Construction, Forestry, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 May 2016. The nominal expiry date of the Agreement is 19 May 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Burton Contractors Pty Ltd sought to enforce an enterprise agreement with its employees, while the Construction, Forestry, Maritime, Mining and Energy Union argued the agreement was invalid. The Fair Work Commission was the forum for this dispute. The crux of the legal issues revolved around the validity of the enterprise agreement and whether it complied with the relevant legislative requirements. Specifically, the Union contended that the agreement did not meet the necessary threshold for employee participation and that the process leading to its approval was flawed.

The Commission delved into the specifics of the agreement, examining the participation rates and the procedural integrity of the approval process. It found that the agreement did not achieve the required 40% employee participation, thereby failing to meet the statutory threshold. Additionally, the process that led to the agreement's approval was deemed inadequate. Consequently, the agreement was declared invalid. The Union's challenge was upheld, and the employer's attempt to enforce the agreement was dismissed. The Fair Work Commission ordered that the enterprise agreement be set aside, and the previous terms of employment would remain in effect until a new, compliant agreement is reached.

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