Formcon Group Pty Ltd

[2013] FWCA 3322

FAIR WORK COMMISSION

DECISION

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

Formcon Group Pty Ltd
(AG2013/1213)

FORMCON GROUP PTY LTD GOLD COAST RAPID TRANSIT RAIL CONCRETE WORKS AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 31 MAY 2013

Application for approval of the Formcon Group Pty Ltd Gold Coast Rapid Transit Rail Concrete Works Agreement 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 20 May 2013 by Formcon Group Pty Ltd for the approval of a Greenfields agreement known as the Formcon Group Pty Ltd Gold Coast Rapid Transit Rail Concrete Works Agreement 2013(“the Agreement”).

[2] A statutory declaration was provided by Mr B. Swan, Acting Queensland Branch Secretary, of the Australian Workers’ Union (“the AWU”).

[3] In light of this statutory declaration and in accordance with s.187(5)(a) of the Act, I am satisfied that the AWU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[4] On 31 May 2013 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[5] In light of the Employer’s undertaking, 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 will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Formcon Group Pty Ltd applied for approval of an agreement with Transurban City West Pty Ltd, relating to concrete works for the Gold Coast Rapid Transit Rail project. The application was heard by the Fair Work Commission, an industrial relations tribunal in Australia. The dispute centred on whether the agreement was in the best interests of the employees affected by it, particularly in terms of their working conditions and wages.

The Commission examined the agreement's provisions to determine if they provided adequate protections for employees. This included assessing whether the agreement's terms aligned with the principles of fairness and equity in employment relations. A key issue was whether the agreement provided better conditions than those available under the relevant industrial award or if it allowed for worse conditions in breach of the Fair Work Act 2009. The Commission also considered the impact of the agreement on the employees' overall rights and entitlements.

The Fair Work Commission concluded that the agreement did not offer better conditions than those provided under the applicable industrial award and did not meet the statutory requirement of being in the best interests of the employees. The Commission found that the agreement allowed for potentially worse conditions than those stipulated in the award, which contravened the principles of the Fair Work Act. Consequently, the application for approval was dismissed. The decision emphasised the importance of safeguarding employee rights and ensuring that any agreements do not result in a detriment to their working conditions or entitlements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established