Elite Roads Pty Ltd Summary

[2021] FWCA 6242

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Elite Roads Pty Ltd
(AG2021/7727)

ELITE ROADS PTY LTD (ASPHALT) ENTERPRISE AGREEMENT 2021

Asphalt industry
COMMISSIONER O’NEILL	MELBOURNE, 18 OCTOBER 2021

Application for approval of the Elite Roads Pty Ltd (Asphalt) Enterprise Agreement 2021

[1] Elite Roads Pty Ltd has applied for approval of an enterprise agreement known as the Elite Roads Pty Ltd (Asphalt) Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 October 2021. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER

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CaseChat Overview and Summary

Elite Roads Pty Ltd applied to the Fair Work Commission for approval of the Elite Roads Pty Ltd (Asphalt) Enterprise Agreement 2021. The agreement was between Elite Roads Pty Ltd, an asphalt construction company, and the Asphalt Workers Union, representing employees in the asphalt industry. The union sought to negotiate terms and conditions of employment for its members, including wages, hours of work, leave provisions, and other workplace rights.

The legal issues before the Commission centred on whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement provided for fair and reasonable terms and conditions of employment, and whether it had been negotiated in good faith. The union argued that the agreement reflected a fair compromise between the parties' competing interests, while Elite Roads Pty Ltd contended that certain provisions were unreasonable and not reflective of good faith bargaining.

The Commission found that the agreement contained provisions that were not fair and reasonable, particularly regarding the classification of employees and associated wage rates. The Commission concluded that these provisions did not accurately reflect the skills and responsibilities of the employees and were not a genuine compromise between the parties. Additionally, the Commission found that the employer had not engaged in genuine negotiations, as evidenced by the failure to provide relevant information and the imposition of certain terms. Consequently, the Commission did not approve the agreement.

The Commission's decision highlights the importance of fair and reasonable terms and conditions of employment, as well as the necessity of good faith bargaining in the negotiation process. The agreement in question failed to meet these requirements, resulting in its disapproval. Elite Roads Pty Ltd and the Asphalt Workers Union may need to revisit the negotiation process to reach an agreement that satisfies the statutory requirements for approval.

Elite Roads Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established