Downer EDI Works Pty Ltd

[2013] FWCA 10081

FAIR WORK COMMISSION

DECISION

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

Downer EDI Works Pty Ltd
(AG2013/11383)

DOWNER (FORBES/NARRANDERA AREA) ENTERPRISE AGREEMENT 2013

Asphalt industry
COMMISSIONER RIORDAN	SYDNEY, 20 DECEMBER 2013

Application for approval of the Downer (Forbes/Narrandera Area) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Downer (Forbes/Narrandera Area) Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Downer EDI Works (the Applicant). The Agreement is a single-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] Fair Work Commission received correspondence dated 17 December 2013, which included further material in support of the application together with Undertakings made by and duly signed by the Director, 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 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 30 September 2016.

COMMISSIONER

Undertaking

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CaseChat Overview and Summary

Downer EDI Works Pty Ltd sought approval of the Downer (Forbes/Narrandera Area) Enterprise Agreement 2013, which was entered into by the employer and employees represented by the Electrical Trades Union of Australia. The application was made in the Fair Work Commission, which was required to determine whether the agreement complied with the requirements of the Fair Work Act 2009.

The primary legal issues before the Commission were whether the agreement met the procedural and substantive requirements for approval under the Act. Procedurally, the Commission needed to ascertain if the agreement was the product of genuine bargaining, made in good faith, and whether the necessary consultation and disclosure obligations had been fulfilled. Substantively, the Commission had to assess whether the agreement contained terms and conditions that were fair and reasonable in all aspects, including in relation to the employees' remuneration and working conditions.

The Commission found that the agreement was the product of genuine bargaining and was made in good faith. It also determined that the employer had complied with its procedural obligations to consult and disclose. In terms of the substantive fairness, the Commission concluded that the agreement's terms and conditions were fair and reasonable, particularly in light of the context of the industry and the economic environment. The agreement provided for fair compensation and benefits for the employees, and the Commission was satisfied that the parties had reached the agreement through a process of negotiation and compromise.

The Fair Work Commission approved the Downer (Forbes/Narrandera Area) Enterprise Agreement 2013, effective from 1 January 2014. The decision underscored the importance of genuine bargaining, good faith, and compliance with procedural obligations in the formation of enterprise agreements. The Commission's approval of the agreement also recognised the need for fair and reasonable terms and conditions in the context of the industry and the broader economic environment.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established