Civmec Construction & Engineering Pty Ltd

[2013] FWCA 6076

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Civmec Construction & Engineering Pty Ltd
(AG2013/2407)

CIVMEC CONSTRUCTION & ENGINEERING PTY LTD YANDI SUSTAINING PROJECT AWU GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 28 AUGUST 2013

Application for approval of the Civmec Construction & Engineering Pty Ltd Yandi Sustaining Project AWU Greenfields Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Civmec Construction & Engineering Pty Ltd Yandi Sustaining Project 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 one year and six months from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Civmec Construction & Engineering Pty Ltd sought approval for the Civmec Construction & Engineering Pty Ltd Yandi Sustaining Project AWU Greenfields Agreement 2013 before the Fair Work Commission. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union, who argued that the agreement did not meet the requirements for approval under the Fair Work Act 2009. The central issue before the Commission was whether the agreement complied with the relevant statutory criteria, specifically whether it facilitated, promoted, or improved the efficiency, productivity, or performance of the enterprise, and whether it achieved a fair and equitable outcome for employees.

The Fair Work Commission examined the terms of the agreement in light of the statutory criteria. It considered whether the agreement's provisions, particularly those related to the sustainability of the project and the roles of the employees, met the requirements for approval. The Commission assessed the potential benefits to the enterprise and the fairness of the agreement to the employees, including the balance of rights and obligations. After thorough consideration, the Commission determined that the agreement did not sufficiently demonstrate compliance with the statutory criteria. It found that the agreement did not clearly establish how it would achieve the desired outcomes for the enterprise or provide fair and equitable benefits to the employees.

Consequently, the Fair Work Commission dismissed the application for approval of the agreement. The Commission's decision was based on the conclusion that the agreement did not meet the necessary statutory standards. The order made by the Commission was that the application for approval of the Civmec Construction & Engineering Pty Ltd Yandi Sustaining Project AWU Greenfields Agreement 2013 be dismissed.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

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Legal Principle Established