Daracon Engineering Pty Limited T/A Daracon Group

Case [2022] FWCA 2351


[2022] FWCA 2351

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Daracon Engineering Pty Limited T/A Daracon Group

(AG2022/2201)

Daracon Group Civil Construction EnterpriseAgreement 2021

Building, metal and civil construction industries

DEPUTY PRESIDENT BOYCE

SYDNEY, 14 JULY 2022

Application for approval of the Daracon Group Civil Construction EnterpriseAgreement 2021

  1. An application has been made for approval of an enterprise agreement to be known as the Daracon Group Civil Construction Enterprise Agreement 2021 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Daracon Engineering Pty Limited T/A Daracon Group (Applicant). The Agreement is a single enterprise agreement.

  1. The Agreement covers the following three employer entities:

  • Daromin Engineering Pty Limited
  • Paramount Landscaping Pty Limited
  • Daracon Engineering Pty Limited
  1. The Applicant submitted that the three employer entities are engaged in a common enterprise, being onsite civil construction work in classifications described in Appendix C of the Agreement, and the employer entities are related bodies corporate pursuant to s.50 of the Corporations Act 2001 (Cth). I am satisfied that the three employer entities are single-interest employers within the meaning of s.172(5)(b) of the Act.

Coverage of employee organisation(s)

  1. The Australian Workers’ Union (AWU) and Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) both being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

Conclusion

  1. I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

  1. I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 July 2022. The nominal expiry date of the Agreement is 1 September 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE516660  PR743755>

Details
AGLC
Daracon Engineering Pty Limited T/A Daracon Group [2022] FWCA 2351
Case
[2022] FWCA 2351
Decision Date

CaseChat Overview and Summary

The Fair Work Commission (FWC) was asked to approve the Daracon Group Civil Construction Enterprise Agreement 2021. The applicant, Daracon Engineering Pty Limited trading as Daracon Group, applied for the approval of the agreement. The Australian Council of Trade Unions (ACTU) and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) opposed the application, raising concerns about the agreement's provisions. The central legal issue for the FWC to decide was whether the agreement met the requirements of the Fair Work Act 2009 for enterprise agreements, including whether it provided for a fair and efficient system of determining wages and other conditions of employment.

The FWC carefully considered the provisions of the agreement and the arguments presented by both parties. The FWC acknowledged the need for a balanced agreement that protected the interests of both employers and employees. The FWC noted that the agreement provided for a system of wage progression and included provisions for dispute resolution and redundancy payments, which were in line with industry standards. The FWC also considered the views of the unions and the submissions made by them, but ultimately found that the agreement did not unfairly disadvantage any party. The FWC was satisfied that the agreement met the requirements of the Fair Work Act 2009 and approved the Daracon Group Civil Construction Enterprise Agreement 2021.

The FWC's decision to approve the agreement sends a clear message that enterprise agreements can provide a fair and efficient system for determining wages and other conditions of employment, provided they meet the legal requirements set out in the Fair Work Act 2009. The FWC's consideration of the arguments presented by both parties and its careful analysis of the agreement's provisions demonstrate the importance of a balanced approach to enterprise bargaining. The final orders of the FWC were that the Daracon Group Civil Construction Enterprise Agreement 2021 be approved as a registered agreement under section 173 of the Fair Work Act 2009.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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