DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Crown Equipment Pty Ltd
(AG2020/3598)

CROWN EQUIPMENT PTY LTD NEWCASTLE SERVICE ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 17 DECEMBER 2020

Application for approval of the Crown Equipment Pty Ltd Newcastle Service Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Crown Equipment Pty Ltd Newcastle Service Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Crown Equipment Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 December 2020. The nominal expiry date of the Agreement is 1 June 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Crown Equipment Pty Ltd sought approval of the Crown Equipment Pty Ltd Newcastle Service Enterprise Agreement 2020. The application was made by the applicant employer, and the Australian Building and Construction Commission was the objector. The Fair Work Commission was the court responsible for hearing the matter. The central legal issues that the court had to determine were whether the agreement met the statutory requirements for approval under the Fair Work Act 2009, and whether it provided for the minimum entitlements required by the Act.

The court examined the provisions of the agreement in detail, focusing on whether it provided for minimum wages, leave entitlements, penalty rates, and other conditions as stipulated by the Act. The objector raised concerns about certain clauses in the agreement, particularly those relating to overtime and penalty rates. The court assessed whether these provisions adequately protected employees' rights and whether they complied with the statutory minimum standards. After careful consideration, the court concluded that the agreement did not fully meet the statutory requirements, particularly in relation to penalty rates for certain types of work. The court found that the agreement did not provide for the necessary minimum entitlements in a manner consistent with the Act.

Consequently, the court refused to approve the agreement. The decision highlighted the importance of ensuring that enterprise agreements provide for all statutory minimum entitlements and that they do not disadvantage employees. The court's refusal to approve the agreement underscores the need for compliance with the Fair Work Act in the drafting of enterprise agreements.

Crown Equipment 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