Central Systems Pty Ltd Summary

[2013] FWCA 5016

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Central Systems Pty Ltd
(AG2013/1951)

CENTRAL SYSTEMS PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 26 JULY 2013

Application for approval of the Central Systems Pty Ltd Roy Hill AWU Greenfields Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Central Systems Pty Ltd Roy Hill AWU Greenfields Agreement 2013 (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 four years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Central Systems Pty Ltd recently sought approval for a registered agreement from the Fair Work Commission (FWC). The applicant, a company operating in the infrastructure sector, had reached an agreement with the Australian Workers' Union (AWU) regarding terms and conditions of employment for workers at the Roy Hill mine in Western Australia. The FWV was tasked with determining whether the agreement met the requirements under the Fair Work Act 2009, including compliance with the better-off-overall test. The AWU did not oppose the application, but certain provisions of the agreement were subject to scrutiny regarding their fairness and compliance with the relevant industrial instruments.

The primary legal issues before the FWC were whether the proposed agreement satisfied the statutory criteria under the Fair Work Act. Specifically, the FWC had to determine if the agreement was in the interests of the employees it covered, including whether it provided a better-off-overall outcome compared to the applicable industrial instruments. The FWC also had to consider the provisions of the agreement that potentially impacted employees' entitlements and ensure they complied with the Act. The applicant argued that the agreement provided for fair and reasonable terms, including improved wages, leave entitlements, and other employment conditions.

After careful consideration, the FWC found that the proposed agreement met the statutory requirements. The FWC was satisfied that the agreement provided a better-off-overall outcome for the employees, as it included improved wages, allowances, and conditions that were not available under the applicable industrial instruments. The FWC noted that the AWU did not raise any objections to the agreement and that the provisions challenged by the applicant were fair and reasonable. The FWC concluded that the agreement was in the best interests of the employees and approved it under the Fair Work Act.

The FWC made an order approving the Central Systems Pty Ltd Roy Hill AWU Greenfields Agreement 2013, subject to the terms and conditions set out in the agreement. The order was effective from the date of the FWC's decision and was to remain in force until terminated or varied by the FWC or by the parties under the Fair Work Act. This decision provides clarity for employers and employees in the infrastructure sector regarding the approval of registered agreements and ensures that the terms and conditions of employment are fair and reasonable.

Central Systems Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established