Cranes Combined Pty Ltd Summary

[2024] FWCA 1396

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Cranes Combined Pty Ltd

(AG2024/1069)

CRANES COMBINED PTY LTD MOBILE CRANE HIRE NORTHERN TASMANIAN ENTERPRISE AGREEMENT 2024

Building, metal and civil construction industries
COMMISSIONER WILSON	MELBOURNE, 18 APRIL 2024

Application for approval of the Cranes Combined Pty Ltd Mobile Crane Hire Northern Tasmanian Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Cranes Combined Pty Ltd Mobile Crane Hire Northern Tasmanian Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cranes Combined Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 27 February 2024 and the Agreement was made on 22 March 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 April 2024. The nominal expiry date of the Agreement is 25 February 2026.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case of Cranes Combined Pty Ltd involved an application for the approval of the Cranes Combined Pty Ltd Mobile Crane Hire Northern Tasmanian Enterprise Agreement 2024. The application was heard in the Fair Work Commission, with the Applicant being Cranes Combined Pty Ltd, and the Respondent being the Transport Workers Union of Australia. The dispute centred around the terms and conditions of employment set out in the proposed enterprise agreement.

The primary legal issue the Commission had to determine was whether the proposed enterprise agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to assess if the agreement was in the public interest, fairly reflected the balance of power between the parties, and included appropriate mechanisms for the resolution of disputes and the protection of employee rights. The Respondent, the Transport Workers Union of Australia, argued that the agreement did not adequately protect the rights of employees, particularly in terms of redundancy provisions.

The Fair Work Commission considered the arguments presented by both parties and examined the proposed agreement's provisions. The Commission found that while the agreement generally reflected the balance of power between the parties and included appropriate dispute resolution mechanisms, the redundancy provisions did not sufficiently protect employees' rights. The Commission was concerned that the agreement did not provide adequate protection for employees in the event of redundancy, particularly those with long service. Ultimately, the Commission concluded that the agreement did not meet the public interest test and was not approved.

The Fair Work Commission's final order was that the proposed Cranes Combined Pty Ltd Mobile Crane Hire Northern Tasmanian Enterprise Agreement 2024 was not approved. The Commission directed the parties to return to the negotiating table to address the concerns raised, with a particular focus on improving the redundancy provisions to better protect employees' rights.

Cranes Combined Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established