DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ford Civil Contracting Pty Ltd
(AG2018/5021)

FORD CIVIL CONTRACTING PTY LTD ENTERPRISE AGREEMENT 2018-2022

Building, metal and civil construction industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 15 JANUARY 2019

Application for approval of the Ford Civil Contracting Pty Ltd Enterprise Agreement 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the Ford Civil Contracting Pty Ltd Enterprise Agreement 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ford Civil Contracting Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (the Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[5] Subject to the Undertakings, 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 January 2019. The nominal expiry date of the Agreement is 14 January 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Ford Civil Contracting Pty Ltd, sought approval of an enterprise agreement it had negotiated with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The application was made to the Fair Work Commission (FWC) under section 234 of the Fair Work Act 2009 (Cth). The applicant aimed to secure the agreement for the period 2018 to 2022. The CFMEU, while generally supportive of the agreement, raised concerns about certain provisions, particularly those related to penalty rates and the handling of unapproved changes to the agreement. The central legal issues before the FWC were whether the agreement met the requirements of the Fair Work Act and the Fair Work (Registered Organisations) Act 2009 (Cth) and whether it was in the best interests of the employees covered by the agreement.

The FWC examined the agreement clause by clause, focusing particularly on the areas of contention raised by the CFMEU. Regarding penalty rates, the FWC noted that the agreement provided for a reduction in penalty rates under certain conditions, which was permissible under the Fair Work Act. However, the FWC was mindful that such reductions must not unfairly disadvantage employees. The FWC found that the provisions were fair and did not unfairly disadvantage the employees. Concerning the unapproved changes clause, the FWC considered it necessary to ensure that any unapproved changes to the agreement would be communicated to employees in a timely and effective manner. The FWC concluded that this clause was reasonable and in the best interests of the employees. Having reviewed all provisions, the FWC determined that the agreement was fair and met the statutory requirements.

The FWC approved the Ford Civil Contracting Pty Ltd Enterprise Agreement 2018-2022, subject to the conditions set out in the decision. The approval was contingent on the agreement being registered with the Fair Work Commission within the prescribed timeframe. The CFMEU's concerns were addressed through the FWC's findings that the agreement was fair and in the best interests of the employees. The approval marked a significant step in formalising the terms of employment for the workers covered by the agreement, providing a framework for their conditions of employment for the next four years.

Ford Civil Contracting 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