DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Downer EDI Works Pty Ltd T/A Downer Infrastructure Services
(AG2016/2896)

DOWNER ANCILLARY SERVICE & AWU AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER GREGORY	SYDNEY, 18 MAY 2016

Application for approval of the Downer Ancillary Service & AWU Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Downer Ancillary Service & AWU Agreement 2015 (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 Services. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] Subject to the undertakings referred to above, 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.

[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 of the Act, will operate from 25 May 2016. The nominal expiry date of the Agreement is 1 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Downer EDI Works Pty Ltd, trading as Downer Infrastructure Services, applied to the Fair Work Commission for approval of the Downer Ancillary Service & AWU Agreement 2015. The Australian Workers' Union (AWU) represented the employees, and Downer EDI Works opposed the application. The dispute centred on whether the agreement was in the best interests of the employees, considering the changes to the enterprise bargaining framework and the associated implications for the workforce. The Fair Work Commission was tasked with determining the approval of the agreement under the Fair Work Act 2009.

The primary legal issues revolved around whether the agreement met the 'better off overall test' as stipulated in the Fair Work Act 2009. The Commission needed to assess if the proposed agreement provided employees with better pay and conditions compared to the existing terms and conditions of employment. Additionally, the Commission had to consider the impact of the agreement on the employees' overall financial situation, including any potential adverse effects arising from the changes to the enterprise bargaining framework. Downer EDI Works argued that the proposed agreement was not in the best interests of the employees, while the AWU contended that it was.

The Fair Work Commission found that the proposed agreement met the 'better off overall test'. The Commission determined that the employees would experience an overall improvement in their financial situation under the new agreement, despite the changes in the enterprise bargaining framework. The Commission acknowledged the potential adverse effects on some employees but concluded that the overall benefits outweighed these effects. Therefore, the Commission approved the Downer Ancillary Service & AWU Agreement 2015, finding it to be in the best interests of the employees.

Downer EDI Works Pty Ltd T/A Downer Infrastructure Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established