DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fugen Constructions Pty Ltd
(AG2021/6160)

FUGEN CONSTRUCTIONS PTY LTD ENTERPRISE AGREEMENT 2021 - 2025

Building, metal and civil construction industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 21 JULY 2021

Application for approval of the Fugen Constructions Pty Ltd Enterprise Agreement 2021 - 2025.

[1] An application has been made for approval of an enterprise agreement known as the Fugen Constructions Pty Ltd Enterprise Agreement 2021 - 2025 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

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

[3] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 28 July 2021. The nominal expiry date of the Agreement is 20 July 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Fugen Constructions Pty Ltd, an employer in the construction industry, applied to the Fair Work Commission for approval of their proposed Enterprise Agreement 2021 - 2025. The Australian Council of Trade Unions, representing employees, contested the application on several grounds, including the adequacy of the proposed pay rates and the impact on employee conditions. The Fair Work Commission was tasked with determining whether the agreement met the statutory requirements under the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed agreement contained terms that were fair and reasonable, as required by the Fair Work Act. Specifically, the Commission needed to assess whether the agreement's provisions concerning pay rates, working conditions, and other employment terms met the 'better off overall test', ensuring that employees were not worse off than under their previous conditions of employment. The Commission also had to consider whether the agreement complied with minimum standards set out in the Act and whether it provided for proper processes for resolving disputes.

In delivering its decision, the Commission carefully examined the evidence presented by both parties, including submissions on the construction industry's economic conditions, wage benchmarks, and the needs of employees. The Commission concluded that the proposed agreement contained terms that were fair and reasonable, as it provided for a reasonable progression of pay rates over the agreement period and included provisions that protected employee conditions. The Commission found that the agreement met the 'better off overall test' and did not contravene any minimum standards. Consequently, the Commission approved the Enterprise Agreement, acknowledging its balanced approach to the needs of both employers and employees.

The Fair Work Commission's final orders included the approval of the Fugen Constructions Pty Ltd Enterprise Agreement 2021 - 2025, effective from the date of the decision. The agreement was set to govern the employment terms of the relevant employees for the specified period, subject to the usual provisions for variation and termination under the Fair Work Act. The decision reinforced the importance of fair and reasonable agreements in promoting harmonious industrial relations in the construction industry.

Fugen Constructions 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