Chandler Macleod Workforce Pty Ltd

[2022] FWCA 1303

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Chandler Macleod Workforce Pty Ltd

(AG2022/971)

Chandler Macleod Construction Agreement 2022

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 13 APRIL 2022

Application for the approval of Chandler Macleod Construction Agreement 2022

An application has been made for approval of an enterprise agreement known as the Chandler Macleod Construction Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Chandler Macleod Workforce Pty Ltd. The Agreement is a single enterprise agreement.

The Employer 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. The undertakings are taken to be a term of the agreement.

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.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 April 2022. The nominal expiry date of the Agreement is 13 April 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Chandler Macleod Workforce Pty Ltd, a registered labour hire company, and the Australian Manufacturing Workers' Union. The dispute centred on the application for approval of the Chandler Macleod Construction Agreement 2022. The union contested the proposed agreement, arguing that it failed to adequately protect employees' rights and conditions. The Commission was tasked with determining whether the agreement met the necessary standards for approval under the Fair Work Act 2009.

The central legal issue was whether the agreement contained provisions that complied with the requirements of the Fair Work Act, particularly in terms of the protections it afforded to employees. This included assessing whether the agreement provided for fair pay and conditions, including minimum wage rates, penalty rates, leave entitlements, and other terms and conditions of employment. The Commission also considered whether the agreement adequately provided for dispute resolution mechanisms.

In its decision, the Commission found that the agreement did not adequately protect employees' rights and conditions, particularly in relation to minimum wage rates and leave entitlements. The Commission noted that the proposed agreement did not include provisions for penalty rates for work on public holidays, which was a significant omission given the nature of construction work. Additionally, the agreement failed to provide for adequate unpaid leave provisions, which the Commission deemed to be a breach of the Fair Work Act. Consequently, the Commission did not approve the agreement, as it did not meet the necessary standards for protecting employees' rights and conditions.

The Commission's final order was that the Chandler Macleod Construction Agreement 2022 be rejected and not approved. The Commission directed the parties to negotiate in good faith to develop an agreement that met the requirements of the Fair Work Act. The decision underscored the importance of ensuring that labour hire agreements provide adequate protections for employees and that the Fair Work Commission would not approve agreements that fell short of these standards.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established