Downer EDI Works Pty Ltd T/A Downer Infrastructure Summary

[2014] FWCA 7223

FAIR WORK COMMISSION

DECISION

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

Downer EDI Works Pty Ltd T/A Downer Infrastructure
(AG2014/7679)

DOWNER INFRASTRUCTURE SOUTH AUSTRALIAN ENTERPRISE AGREEMENT 2014-2018

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 14 OCTOBER 2014

Application for approval of the Downer Infrastructure South Australian Enterprise Agreement 2014-2018.

[1] An application has been made for approval of an enterprise agreement known as the Downer Infrastructure South Australian Enterprise Agreement 2014-2018 (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 Pty Ltd T/A Downer Infrastructure. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“Clause 9.2 Superannuation

The Company confirms its default superannuation fund offers a “MySuper” product so as to comply with the requirements of s.194 (h)(i) of the Fair Work Act 2009.

The Company’s default superannuation fund is the “Downer Super plan, a sub-plan of the Plum Superannuation Fund”.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[4] 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 Australian Workers’ Union (AWU), 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) of the Act I note that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 October 2014. The nominal expiry date of the Agreement is 30 June 2018.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Downer EDI Works Pty Ltd, trading as Downer Infrastructure, applied for the approval of the Downer Infrastructure South Australian Enterprise Agreement 2014-2018. The application was made to the Fair Work Commission, which adjudicated on the dispute regarding the terms and conditions of employment for the workers covered by the agreement. The primary focus of the case was to determine whether the proposed enterprise agreement met the necessary criteria for approval under the Fair Work Act 2009.

The central legal issue that the Commission had to address was whether the enterprise agreement provided for the proper determination of wages and other conditions of employment and satisfied the "better off overall test." This test requires that the agreement must not provide for terms and conditions that are worse than the applicable award or safety net minimum terms and conditions, and that it must be better off overall for the employees than if the agreement had not been made. The Commission needed to assess whether the agreement met these statutory requirements and if it complied with the provisions of the Fair Work Act.

In its decision, the Fair Work Commission determined that the Downer Infrastructure South Australian Enterprise Agreement 2014-2018 complied with the relevant statutory requirements. The Commission found that the agreement provided for the proper determination of wages and other conditions of employment and satisfied the "better off overall test." It was concluded that the agreement met the necessary criteria for approval under the Fair Work Act 2009 and was thus approved. The Commission took into account the submissions and evidence presented by the parties and made its decision based on the merits of the case.

The final orders of the Fair Work Commission included the approval of the Downer Infrastructure South Australian Enterprise Agreement 2014-2018, effective from the date of the decision. The Commission specified that the agreement would apply to the relevant employees and would govern their terms and conditions of employment during the period from 1 July 2014 to 30 June 2018. The decision was made in accordance with the provisions of the Fair Work Act 2009 and was binding on the parties involved in the dispute.

Downer EDI Works Pty Ltd T/A Downer Infrastructure

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established