Classic Contractors Pty Ltd

[2024] FWCA 3833

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Classic Contractors Pty Ltd

(AG2024/3898)

CLASSIC CONTRACTORS PTY LTD ENTERPRISE AGREEMENT 2024

Building, metal and civil construction industries
COMMISSIONER P RYAN	SYDNEY, 1 NOVEMBER 2024

Application for approval of the Classic Contractors Pty Ltd Enterprise Agreement 2024

Classic Contractors Pty Ltd (Employer) has made an application for approval of an enterprise agreement known as the Classic Contractors Pty Ltd Enterprise Agreement 2024 (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Regulation 2.06A Requirements

The application was accompanied by a signature page that did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009. An amended signature page was subsequently filed. I consider it appropriate in the circumstances to waive the irregularity in the form or manner in which the application was made and do so pursuant to s.586(b) of the FW Act.

Sections 186, 187, 188

I am satisfied that each of the requirements of ss.186, 187 and 188 of the FW Act as are relevant to this application for approval have been met. In coming to this conclusion, I have had regard to the material contained in the application, the accompanying declaration, the Employer’s responses to issues identified, and the Statement of Principles.[1]

National Employment Standards

I observe that clause 32 of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 5.4 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 8 November 2024. The nominal expiry date of the Agreement is 1 November 2028.

COMMISSIONER

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Classic Contractors Pty Ltd, along with several unions, applied to the Fair Work Commission for the approval of the Classic Contractors Pty Ltd Enterprise Agreement 2024. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The nature of the dispute centred on whether the proposed agreement, which outlined the terms and conditions of employment for workers in the construction industry, met the necessary legal standards for approval under the Fair Work Act 2009. The Fair Work Commission, the body responsible for overseeing this matter, was tasked with determining whether the agreement should be approved.

The legal issues before the Commission involved whether the agreement complied with the provisions of the Fair Work Act, specifically sections that require enterprise agreements to provide for minimum rates of pay, leave entitlements, and other conditions of employment. Additionally, the Commission had to assess whether the agreement appropriately balanced the interests of employers and employees and whether it met the 'better off overall test'. This test requires that the overall financial and non-financial benefits to employees should be at least as good as the relevant award or safety net.

In delivering its decision, the Commission found that the proposed agreement satisfied the necessary requirements under the Fair Work Act. The agreement provided for adequate minimum rates of pay, leave entitlements, and other employment conditions, and it was deemed to meet the better off overall test. The Commission acknowledged the submissions made by the CFMEU, but concluded that the proposed agreement was fair and reasonable, and therefore approved the application for registration. The Commission's decision was grounded in a detailed analysis of the provisions of the Fair Work Act and a consideration of the balance of interests between the parties.

The final orders of the Commission were that the Classic Contractors Pty Ltd Enterprise Agreement 2024 be approved and registered under the Fair Work Act 2009. This decision meant that the terms and conditions outlined in the agreement would govern the employment of workers in the specified enterprise, providing a framework for the relationship between the employer and employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established