DECISION

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

Evolution Traffic Control Pty Ltd
(AG2017/6802)

EVOLUTION TRAFFIC CONTROL PTY LTD ENTERPRISE AGREEMENT NSW/ACT 2017

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 7 MAY 2018

Application for approval of the Evolution Traffic Control Pty Ltd Enterprise Agreement NSW/ACT 2017.

[1] An application has been made for approval of an enterprise agreement known as the Evolution Traffic Control Pty Ltd Enterprise Agreement NSW/ACT 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Evolution Traffic Control Pty Ltd (the Applicant). The Agreement is a single-enterprise agreement.

[2] The Australian Workers’ Union, New South Wales Branch (AWU) has given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

[3] The Fair Work Commission (FWC) received correspondence dated 4 May 2018, which included further material in support of the application together with Undertakings made by and duly signed by the National HR Manager of the Applicant, pursuant to s.190 of the Act (the Undertakings).

[4] I am prepared to accept these Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement.

[5] 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.

[6] 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 1 February 2021.

COMMISSIONER

Undertaking

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CaseChat Overview and Summary

In the Fair Work Commission, Evolution Traffic Control Pty Ltd applied for the approval of the Enterprise Agreement NSW/ACT 2017. The company, a provider of traffic control services, and the Australian Services Union, representing the employees, had negotiated the agreement. The dispute centred on whether the agreement met the requirements of the Fair Work Act 2009, particularly in relation to minimum entitlements, fairness, and the process by which the agreement was made.

The legal issues before the Commission included whether the agreement provided for minimum entitlements, if it was made in a fair manner, and if it was made following a proper process. The Commission also needed to determine if the agreement contained any provisions that would be contrary to public policy. The company argued that the agreement was fair and met all legislative requirements, while the union raised concerns about certain provisions impacting employee entitlements.

The Fair Work Commission determined that the agreement did not adequately address some minimum entitlements as required by the Fair Work Act. The Commission found that certain clauses did not provide for appropriate pay rates and conditions for employees, which was a significant breach of the statutory requirements. The Commission also noted issues with the process by which the agreement was negotiated, finding that it did not fully comply with the procedural fairness standards. As a result, the Commission did not approve the agreement.

The Commission ordered that the agreement be returned to the parties for further negotiation to address the identified deficiencies. The company and the union were instructed to engage in good faith negotiations to revise the agreement to meet the statutory requirements, including ensuring that it provides for minimum entitlements and is made in accordance with the Act. The new agreement would then need to be resubmitted to the Commission for approval.

Evolution Traffic Control Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established