DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Daromin Engineering Pty Ltd T/A Daracon Group
(AG2020/4029)

DARACON GROUP RAIL ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
COMMISSIONER YILMAZ	MELBOURNE, 25 JANUARY 2021

Application for approval of the Daracon Group Rail Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Daracon Group Rail 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 Daromin Engineering Pty Ltd T/A Daracon Group. 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and in accordance with s.54, will operate from 1 February 2021. The nominal expiry date of the Agreement is 31 March 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Daromin Engineering Pty Ltd, trading as Daracon Group, applied for the approval of the Daracon Group Rail Enterprise Agreement 2020. The application was heard by the Fair Work Commission (FWC), specifically before Commissioner C. The dispute primarily revolved around the procedural fairness and the appropriateness of the agreement terms as they pertain to the employees represented by the applicant.

The central legal issues before the FWC included whether the applicant had complied with the procedural requirements for negotiating the agreement, and whether the terms of the agreement were fair and reasonable. The FWC needed to assess if there was proper consultation with the employee representatives, and if the agreement met the standard of being "better off overall" for the employees.

Commissioner C found that the applicant had adequately fulfilled the procedural obligations required for negotiating the agreement. The evidence presented demonstrated that the applicant had engaged in good faith negotiations with the employee representatives, ensuring that all parties had the opportunity to participate and voice their concerns. Furthermore, the FWC concluded that the terms of the agreement were fair and reasonable, taking into account the overall benefits for the employees. The agreement was deemed to be better off for the employees, as it provided for improved conditions, including wages and other employment benefits.

In light of the findings, Commissioner C approved the Daracon Group Rail Enterprise Agreement 2020. This approval formalises the agreement, making it binding on the parties involved, and effective from the specified commencement date. The decision underscores the importance of procedural fairness in the negotiation process and the need for agreements to be beneficial to the employees.

Daromin Engineering Pty Ltd T/A Daracon Group

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established