CSR Building Products Limited Summary

[2014] FWCA 5002

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CSR Building Products Limited
(AG2014/1708)

CSR LIMITED - CECIL PARK ELECTRICAL MAINTENANCE PERSONNEL ENTERPRISE AGREEMENT 2014-2016

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 24 JULY 2014

Application for approval of the CSR Limited - Cecil Park Electrical Maintenance Personnel Enterprise Agreement 2014 - 2016.

[1] An application has been made for approval of an enterprise agreement known as the CSR Limited - Cecil Park Electrical Maintenance Personnel Enterprise Agreement 2014 - 2016 (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by CSR Building Products Limited. The agreement is a single enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Construction, Forestry, Mining and Energy Union, being bargaining representatives for the Agreement, have given notice under s183 of the Act that it wants the Agreement to cover it. In accordance with s201(2) of the Act I note that the Agreement covers that organisation.

[5] The Agreement is approved and, in accordance with s54 of the Act, will operate from 31 July 2014. The nominal expiry date of the Agreement is 16 March 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In CSR Building Products Limited, the Fair Work Commission was asked to approve a proposed enterprise agreement. The applicant, CSR Building Products Limited, sought approval for the CSR Limited - Cecil Park Electrical Maintenance Personnel Enterprise Agreement 2014 - 2016. The agreement was between CSR Building Products Limited and the Electrical Trades Union of Australia (ETUA), representing the employees.

The legal issues before the Commission included whether the proposed agreement complied with the requirements of the Fair Work Act 2009 and whether it met the 'better off overall test'. The 'better off overall test' requires that employees are no worse off financially and have some additional benefit compared to their previous conditions. The ETUA argued that the agreement did not meet this test and contained provisions that were contrary to public policy.

The Fair Work Commission found that the proposed agreement did not meet the better off overall test. The Commission considered that the proposed agreement contained provisions that were detrimental to employees, such as reducing their redundancy entitlements. The Commission also found that the agreement contained provisions that were contrary to public policy, including provisions that allowed for the outsourcing of work to contractors without appropriate safeguards. As a result, the Commission refused to approve the proposed agreement.

The Commission noted that the agreement did not provide adequate protections for employees and did not meet the requirements of the Fair Work Act. The Commission emphasised the importance of ensuring that employees are not worse off financially and have some additional benefit from any proposed changes to their conditions of employment. The Commission also highlighted the need for appropriate safeguards when outsourcing work to contractors. The Fair Work Commission's decision in this case serves as a reminder to employers and unions of the importance of ensuring that any proposed changes to employees' conditions of employment meet the requirements of the Fair Work Act and provide adequate protections for employees.

CSR Building Products Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established