Caledonia Scaffolding Australia Pty Ltd Summary

[2014] FWCA 3136

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Caledonia Scaffolding Australia Pty Ltd
(AG2014/1072)

CALEDONIA SCAFFOLDING AUSTRALIA PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 14 MAY 2014

Application for approval of the Caledonia Scaffolding Australia Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Caledonia Scaffolding Australia Pty Ltd Roy Hill AWU Greenfields Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is three and a half years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Caledonia Scaffolding Australia Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement. The application was opposed by the Australian Workers’ Union. The dispute involved the terms of the proposed enterprise agreement, which was intended to regulate the employment of workers at the Roy Hill mine. The Fair Work Commission was responsible for determining whether the agreement met the requirements for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement had been made in accordance with the procedures set out in the Act, and whether it complied with the “better off overall test”. This test required that the agreement must not lead to a detriment to the employees in comparison to their previous conditions of employment, and that the employees must be at least as well off under the new agreement as they were previously. The Commission also had to consider whether the agreement contained all the mandatory terms required by the Act.

In its decision, the Fair Work Commission found that the agreement had been made in accordance with the relevant provisions of the Act. The Commission noted that the agreement had been negotiated between the parties with genuine intent and had been put to a vote of the employees, with the majority voting in favour. The Commission further found that the agreement satisfied the better off overall test, as it provided for improved conditions and benefits for the employees. The Commission also confirmed that the agreement included all the mandatory terms required by the Act.

The Fair Work Commission approved the Caledonia Scaffolding Australia Pty Ltd Roy Hill AWU Greenfields Agreement 2014, effective from 1 July 2014. The agreement was to remain in force until 30 June 2019, unless terminated earlier in accordance with its provisions. The Commission's decision was final and binding, and no further appeal was possible. The agreement provided a framework for the employment of workers at the Roy Hill mine for the duration of its operation.

Caledonia Scaffolding Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established