DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cord Civil Pty Ltd
(AG2020/610)

CORD CIVIL PTY LTD AND EMPLOYEES ENTERPRISE AGREEMENT 2020-2024

Building, metal and civil construction industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 9 APRIL 2020

Application for approval of the Cord Civil Pty Ltd and Employees Enterprise Agreement 2020-2024.

[1] Cord Civil Pty Ltd has applied for approval of a single enterprise agreement known as the Cord Civil Pty Ltd and Employees Enterprise Agreement 2020-2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about whether the pre-approval requirements were met and the Agreement contravenes s.55 of the Act. Further information was provided in relation to these concerns.

[3] A written undertaking was given in accordance with s.190 of the Act and is attached at Annexure A (Undertaking). The bargaining representatives did not oppose the Undertaking. I am satisfied that the Undertaking will not cause financial detriment to any employee covered by the Agreement and that the Undertaking will not result in substantial changes to the Agreement. Pursuant to s.201(3) of the Act, the Undertaking is taken to be a term of the Agreement.

[4] On an overall assessment of the identified benefits and detriments of the Agreement, and having regard to the further information, evidence and Undertaking provided, I consider that the employees and prospective employees to be covered are better off overall under the Agreement than if the relevant reference instrument(s) applied.

[5] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertaking, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The Agreement was approved on 9 April 2020 and, in accordance with s.54, will operate from 16 April 2020. The nominal expiry date of the Agreement is 9 April 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Cord Civil Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement with its employees for the period 2020-2024. The applicants sought to have the agreement made while avoiding the requirement to hold a vote of the employees. The dispute was heard by Commissioner Smith in the Fair Work Commission.

The central issue before the court was whether the application for approval of the enterprise agreement could be made without a vote of the employees. The applicants argued that the employees had already voted on the agreement in a previous meeting and that there had been no significant changes to the agreement since then. The respondents argued that a vote was necessary to ensure that the employees had properly considered the terms of the agreement.

The court found that the applicants had not satisfied the requirements for approval of an enterprise agreement without a vote. The court noted that the agreement had undergone changes since the previous vote, and that the employees had not had an opportunity to consider the new terms. The court also found that the applicants had not demonstrated that the employees had been adequately informed of the changes to the agreement. The court rejected the application for approval of the enterprise agreement.

The court ordered that the application be dismissed and that the enterprise agreement be returned to the applicants for further consideration. The court noted that the applicants could seek to have the agreement approved once the employees had had an opportunity to vote on it. The court also noted that the applicants could seek to have the agreement approved by the Fair Work Commission if they were able to demonstrate that the employees had been adequately informed of the changes to the agreement and that the agreement met the requirements for approval.

Cord Civil 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