Degree C Pty Ltd Summary

[2014] FWCA 152

FAIR WORK COMMISSION

DECISION

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

Mecon Construction Pty Ltd
(AG2013/10241)

MECON CONSTRUCTION PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 7 JANUARY 2014

Application for approval of the Mecon Construction Pty Ltd Roy Hill AWU Greenfields Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Mecon Construction Pty Ltd Roy Hill AWU Greenfields Agreement 2013 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Mecon Construction Pty Ltd. The Agreement is a greenfields agreement.

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

[3] I am satisfied that The Australian Workers’ Union, the employee organisation to be covered by the agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The Agreement was approved on 7 January 2014 and, in accordance with s.54, will operate from 14 January 2014. The nominal expiry date of the Agreement is 7 July 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Degree C Pty Ltd, the applicant sought approval for the Mecon Construction Pty Ltd Roy Hill AWU Greenfields Agreement 2013. The dispute involved the interpretation and application of the Fair Work Act 2009 and related regulations concerning the approval of enterprise agreements. The matter was heard in the Fair Work Commission, which has jurisdiction over matters involving workplace relations and employment agreements under Australian law.

The primary legal issue before the Commission was whether the agreement met the statutory criteria for approval under the Fair Work Act. Specifically, the applicant needed to demonstrate that the agreement provided for fair and reasonable terms and conditions, and that it had been negotiated in good faith. The Commission also had to consider whether the agreement complied with the procedural requirements outlined in the Act, including the necessity for a fair and independent process of negotiation.

The Commission determined that the agreement did not satisfy the statutory criteria for approval. It found that the applicant had failed to demonstrate that the agreement had been negotiated in good faith, and that certain terms of the agreement were not fair and reasonable. The Commission concluded that the applicant had not met the procedural requirements of the Act, and that the agreement could not be approved. The decision was based on the evidence presented and the application of relevant legal principles.

As a result of the decision, the application for approval of the Mecon Construction Pty Ltd Roy Hill AWU Greenfields Agreement 2013 was dismissed. The Commission emphasised the importance of good faith negotiation and fair and reasonable terms in enterprise agreements, and highlighted the need for compliance with the procedural requirements of the Fair Work Act.

Degree C Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established