Forge Group Construction Pty Ltd T/A Forge Group Construction

[2013] FWCA 8248

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Forge Group Construction Pty Ltd T/A Forge Group Construction
(AG2013/9808)

FORGE GROUP CONSTRUCTION PTY LTD YANDI SUSTAINING PROJECT AMWU GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 22 OCTOBER 2013

Application for approval of the Forge Group Construction Pty Ltd Yandi Sustaining Project AMWU Greenfields Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Forge Group Construction Pty Ltd Yandi Sustaining Project AMWU Greenfields Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

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

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is one year and six months from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Forge Group Construction Pty Ltd, trading as Forge Group Construction, which sought approval for the Yandi Sustaining Project AMWU Greenfields Agreement 2013. The application was made to the Fair Work Commission, which had the jurisdiction to determine whether the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009. The Australian Manufacturing Workers' Union (AMWU) and the employer contested various aspects of the agreement, including its compliance with the Act and its fairness to employees.

The central legal issues before the Commission were whether the proposed agreement complied with the requirements of the Fair Work Act and was fair and reasonable in all its terms. Specifically, the Commission needed to assess if the agreement provided appropriate terms and conditions for employees, including pay rates, hours of work, and other employment conditions. The Commission also had to consider whether the agreement was consistent with the principles of enterprise bargaining and whether it provided for the fair resolution of workplace issues.

The Commission found that the proposed agreement did not adequately address certain terms and conditions that were essential for the employees' welfare and compliance with the Fair Work Act. The Commission emphasised the importance of ensuring that all employees were covered by a modern award and that the agreement provided for a minimum rate of pay that was in line with industry standards. Additionally, the Commission noted that the agreement failed to address some of the specific issues raised by the AMWU regarding employee entitlements and conditions. Based on these findings, the Commission rejected the application for approval of the agreement, emphasising the need for the parties to revisit the agreement to address the identified deficiencies.

As a result of the Commission's decision, the Yandi Sustaining Project AMWU Greenfields Agreement 2013 was not approved. The Commission ordered that the application be returned to the parties for further negotiation and amendment to address the identified issues, with the goal of reaching an agreement that met all legal and fairness requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established