Daromin Engineering Pty Ltd T/A Daracon Group

[2022] FWCA 1944

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Daromin Engineering Pty Ltd T/A Daracon Group

(AG2022/1661)

Daracon Group Stemming and Other Supplies Enterprise Agreement 2021

Road transport industry
COMMISSIONER MCKINNON	SYDNEY, 16 JUNE 2022

Application for approval of the Daracon Group Stemming and Other Supplies Enterprise Agreement 2021.

Daromin Engineering Pty Ltd T/A Daracon Group has applied for approval of a single enterprise agreement known as the Daracon Group Stemming and Other Supplies Enterprise Agreement 2021 (the Agreement).

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.

The Agreement is approved and will operate from 23 June 2022. The nominal expiry date of the Agreement is 1 September 2025.

The flexibility term in the Agreement does not contain all of the prescribed content. The model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

COMMISSIONER

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In the Fair Work Commission, the case of Daromin Engineering Pty Ltd T/A Daracon Group concerns an application for the approval of the Daracon Group Stemming and Other Supplies Enterprise Agreement 2021. The application was brought by the employer, Daromin Engineering Pty Ltd, against the union representing the employees, the Construction, Forestry, Maritime, Mining and Energy Union. The dispute involves the terms and conditions of employment for employees within the company’s stemming and other supplies division. The legal issues before the Commission centred on whether the proposed enterprise agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement provided for the terms and conditions of employment that were no worse off financially than those provided for under the relevant award and whether it complied with the good faith bargaining requirements.

The Commission considered the submissions from both parties, focusing on the financial provisions of the agreement and the bargaining process. The employer argued that the agreement was fair and reasonable, providing for a balanced outcome for both employees and the business. The union contended that certain provisions were unfavourable to employees and did not reflect the outcomes of good faith bargaining. The Commission evaluated the evidence and submissions, ultimately finding that the agreement met the criteria for approval. The financial terms were deemed to be no worse off than those provided for in the relevant award, and the bargaining process was found to have been conducted in good faith. Consequently, the Commission approved the agreement, recognising its compliance with the statutory requirements.

The outcome of the case ensures that the proposed enterprise agreement will regulate the terms and conditions of employment for employees within the stemming and other supplies division of Daromin Engineering Pty Ltd. The approval of the agreement reflects the Commission's determination that it meets the legal standards for financial fairness and good faith bargaining. The final orders of the Commission included the approval of the Daracon Group Stemming and Other Supplies Enterprise Agreement 2021, effective from the date of the decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established