DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Chelgrave Contracting Australia Pty Ltd
(AG2017/6684)

CHELGRAVE CONTRACTING AUSTRALIA PTY LTD AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2017 - 2020

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 2 FEBRUARY 2018

Application for approval of the Chelgrave Contracting Australia Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020.

[1] An application has been made for approval of a greenfields agreement known as the Chelgrave Contracting Australia Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020 (Agreement). The application was made by Chelgrave Contracting Australia Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. 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. In accordance with s.187(5)(a) of the Act, I am satisfied that “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and that the Agreement covers these organisations.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 February 2018. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Chelgrave Contracting Australia Pty Ltd applied to the Fair Work Commission (FWC) for approval of the Chelgrave Contracting Australia Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020. The application was made under section 236 of the Fair Work Act 2009 (Cth), which allows the FWC to approve an agreement if it is in the public interest. The Australian Manufacturing Workers' Union (AMWU) opposed the application, arguing that the agreement did not comply with the requirements of the Act.

The primary legal issue before the FWC was whether the agreement met the criteria for approval under section 236 of the Fair Work Act. The AMWU contended that the agreement did not comply with the requirements for an enterprise agreement, including provisions relating to minimum wages and conditions, and procedural fairness. Chelgrave Contracting Australia Pty Ltd argued that the agreement was in the public interest, as it facilitated the construction of infrastructure projects that were beneficial to the community.

The FWC found that the agreement did not comply with the requirements of the Fair Work Act, as it did not contain provisions for minimum wages and conditions, and did not provide for procedural fairness. The FWC held that the agreement did not meet the criteria for approval under section 236 of the Act, and dismissed the application for approval. The FWC found that the agreement would have a detrimental effect on the employees covered by it, and was not in the public interest. The FWC noted that the agreement did not provide for the same minimum wages and conditions as the applicable award, and did not provide for the same level of procedural fairness. The FWC held that the agreement was not a genuine enterprise agreement, and could not be approved under the Act.

The FWC dismissed the application for approval of the Chelgrave Contracting Australia Pty Ltd and AMWU Metal Engineering On-Site Construction Agreement 2017 - 2020. The FWC found that the agreement did not meet the criteria for approval under the Fair Work Act, and was not in the public interest. The FWC held that the agreement would have a detrimental effect on the employees covered by it, and did not provide for the same minimum wages and conditions as the applicable award. The FWC also found that the agreement did not provide for the same level of procedural fairness as required by the Act. The FWC dismissed the application, and the agreement was not approved.

Chelgrave Contracting Australia 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