Daracon Contractors Pty Ltd; Daracon Engineering Pty Ltd; Daracon Rail Pty Ltd; Daromin Engineering Pty Limited; Paramount Landscaping Pty Ltd

[2014] FWCA 8418

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a multi-enterprise agreement

Daracon Contractors Pty Ltd; Daracon Engineering Pty Ltd; Daracon Rail Pty Ltd; Daromin Engineering Pty Limited; Paramount Landscaping Pty Ltd
(AG2014/7721)

DARACON GROUP CIVIL CONSTRUCTION ENTERPRISE AGREEMENT 2014 - 2018

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 25 NOVEMBER 2014

Application for approval of the DARACON Group Civil Construction Enterprise Agreement 2014 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the DARACON Group Civil Construction Enterprise Agreement 2014 - 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Daracon Group, which includes, but is not limited to, Daracon Contractors Pty Ltd, Daracon Engineering Pty Ltd, Daracon Rail Pty Ltd, Daromin Engineering Pty Limited and Paramount Landscaping Pty Ltd (the Applicant). The Agreement is a multi-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act relevant to this application for approval have been met.

[3] The Fair Work Commission received an undertaking lodged with the application, relating to specialised, operator tool and Camp allowances, made by and duly signed by Emma Morson, Industrial Relations Manger and the 14 Employee Bargaining Representatives. The Fair Work Commission received a further undertaking dated 24 November 2014, relating to the Superannuation provision at clause 15 of the Agreement, also made by and duly signed by Emma Morson, Industrial Relations Manger, proposed to FWC pursuant to s.190 of the Act (the Undertakings).

[4] I am prepared to accept the Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement. I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] The Australian Workers’ Union and the Construction, Forestry, Mining and Energy Union, Construction Division have given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days after the issuing of this decision. The nominal expiry date of the Agreement is 1 September 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The DARACON Group, comprising several entities, applied for the approval of their Civil Construction Enterprise Agreement 2014-2018. The application was made under the Fair Work Act 2009, seeking a determination by the Fair Work Commission. The dispute centred around whether the agreement met the criteria for approval under the legislation and whether it provided fair and reasonable terms for the employees covered by the agreement.

The central legal issue the court had to address was whether the agreement contained terms that were fair and reasonable in all respects. The court was tasked with assessing if the agreement met the requirements of the Fair Work Act, including ensuring that it provided for fair and reasonable terms, was free from coercion and undue influence, and did not undermine the right to freedom of association. Additionally, the court needed to determine if the agreement was genuinely negotiated and if it complied with the prescribed minimum terms and conditions.

The Fair Work Commission found that the agreement contained fair and reasonable terms for the employees covered by it. The court noted that the agreement was the product of genuine negotiations between the employer and the employees' representatives. It was also observed that the agreement provided for terms and conditions that were not worse off than the applicable awards and included provisions for minimum wage rates, leave entitlements, and dispute resolution mechanisms. The Commission concluded that the agreement complied with the requirements of the Fair Work Act and was therefore approved.

As a result of the approval, the Civil Construction Enterprise Agreement 2014-2018 is now a registered agreement under the Fair Work Act. This means that it will apply to the employees covered by the agreement and will take precedence over any inconsistent provisions in applicable awards. The DARACON Group and the employees' representatives are bound by the terms of the agreement, and any disputes arising under the agreement must be resolved in accordance with its dispute resolution provisions.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established