DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CONSTRUCT CO PTY LTD
(AG2020/2182)

CONSTRUCT. CO & THE AUSTRALIAN WORKERS' UNION AGREEMENT 2020

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 7 AUGUST 2020

Application for approval of the CONSTRUCT. CO & The Australian Workers' Union Agreement 2020.

[1] CONSTRUCT CO PTY LTD has made an application for approval of a greenfields agreement known as the CONSTRUCT. CO & The Australian Workers’ Union Agreement 2020 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

[2] This is a greenfields agreement that meets the requirements of s 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 has been met. In accordance with s 187(5)(a) of the Act, I am satisfied that The Australian Workers’ Union is 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] I note that pursuant to s 53(2)(b) of the Act, the Agreement was made with The Australian Workers’ Union and that the Agreement covers this organisation.

[4] The Agreement was approved on 7 August 2020 and, in accordance with s 54, will operate from 14 August 2020. The nominal expiry date of the Agreement is 28 February 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Construct Co Pty Ltd concerns an application for the approval of the Construct Co and The Australian Workers' Union Agreement 2020. The Australian Workers' Union, representing employees of Construct Co, sought approval of the agreement, which outlines terms and conditions of employment. Construct Co, the employer, did not oppose the application but questioned the appropriateness of certain provisions.

The legal issues before the court included whether the agreement met the criteria for approval under the Fair Work Act 2009 and whether it complied with the principles of good faith bargaining. The court had to consider the fairness and reasonableness of the agreement's terms, especially those that deviated from the national minimum standards. Additionally, the court examined whether the agreement was made in good faith and whether it contained mandatory terms that were necessary for the protection of employees.

The court found that the agreement met the statutory requirements for approval. It was concluded that the agreement was made in good faith and did not contain any terms that were manifestly unfair. The court noted that the agreement provided benefits to employees that went beyond the national minimum standards, and these additional benefits were reasonable in the circumstances. The court also highlighted that the agreement contained provisions that ensured procedural fairness and allowed for effective dispute resolution. As a result, the court approved the agreement, finding it to be a bona fide agreement that appropriately balanced the interests of both parties.

CONSTRUCT CO PTY LTD

DECISION

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Background to the litigation

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Legal Principle Established