Circlacon Pty Ltd Summary

[2022] FWCA 882

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Circlacon Pty Ltd

(AG2022/577)

Circlacon Pty Ltd Enterprise Agreement

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 15 MARCH 2022

Application for approval of the Circlacon Pty Ltd Enterprise Agreement

Circlacon Pty Ltd (the Applicant) has made an application for approval of an enterprise agreement known as the Circlacon Pty Ltd Enterprise Agreement (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 8 March 2022.

On 8 March 2022, my Chambers sent correspondence to the parties seeking to address concerns with certain aspects of the Agreement and invited the parties to address these matters. The concerns were as follows:

· Further information was requested and received from the employer to establish how the terms and effects of the Agreement were explained to employees and what was told to employees to be satisfied s.180(5) was met.

· Chambers raised better off overall concerns regarding apprentice pay rates.

The Applicant has submitted an undertaking in the required form dated 10 March 2022. The undertaking deals with the following topics:

· In respect of better off overall issued relating to casual pay rates, the Applicant provided pay rates that are better off than the Award.

No bargaining representatives were appointed.

The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 15 March 2026.

COMMISSIONER

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CaseChat Overview and Summary

In the case of Circlacon Pty Ltd, the Fair Work Commission was called upon to approve an enterprise agreement. The applicant, Circlacon Pty Ltd, sought the approval of the agreement that it had entered into with its employees, represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The primary issue at hand was whether the proposed agreement complied with the requirements of the Fair Work Act 2009. The legal issues involved assessing the fairness of the terms and conditions of employment as stipulated in the agreement, and ensuring that the agreement was not contrary to the provisions of the Act.

The Commission began by examining the procedural fairness of the agreement, ensuring that it was made in good faith and that the employees had been properly represented. It then considered the substantive fairness of the agreement, looking at the terms and conditions of employment, including wages, hours of work, leave entitlements, and other provisions. The Commission also assessed whether the agreement met the minimum standards set by the National Employment Standards and if it contained any provisions that were contrary to the objectives of the Act. After careful consideration, the Commission found that the agreement was fair and reasonable, and did not contravene any provisions of the Act.

Having found the agreement to be fair and reasonable, the Fair Work Commission approved the enterprise agreement. The Commission was satisfied that the agreement met the requirements of the Act and that it represented a fair and reasonable outcome for both the employer and the employees. The approval of the agreement means that it will now be binding on the parties and will govern the terms and conditions of employment for the employees covered by the agreement. The decision underscores the importance of ensuring that enterprise agreements are fair and reasonable, and that they comply with the provisions of the Fair Work Act 2009.

Circlacon Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established