DECISION

Fair Work Act 2009
s.185—Enterprise agreement

G T Jeffreys Developments Pty Ltd T/A GT Jeffrey’s Building Contractors
(AG2016/5480)

GT JEFFREYS DEVELOPMENTS ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 7 OCTOBER 2016

Application for approval of the GT Jeffreys Developments Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the GT Jeffreys Developments Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by G T Jeffreys Developments Pty Ltd T/A GT Jeffrey’s Building Contractors. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 October 2016. The nominal expiry date of the Agreement is 6 October 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The applicant, GT Jeffreys Developments Pty Ltd, trading as GT Jeffrey's Building Contractors, sought approval of the GT Jeffreys Developments Enterprise Agreement 2016. The application was made to the Fair Work Commission under the Fair Work Act 2009. The nature of the dispute was whether the agreement complied with the legal standards and requirements set out in the Act, particularly in relation to its fairness and its compliance with the various sections of the Act that govern enterprise agreements. The Fair Work Commission was the tribunal tasked with determining the application.

The central legal issues before the Commission were whether the agreement was a "bare minimum" agreement, whether it met the "better off overall test", and whether it complied with the "good faith" provisions of the Act. Additionally, the Commission had to consider whether the agreement adequately protected employees' rights and interests, and whether it contained provisions that were necessary and appropriate for the proper functioning of the enterprise. The applicant argued that the agreement was fair and met all legal requirements, while the objectors contended that it fell short in several respects.

The Fair Work Commission, after reviewing the evidence and submissions from both parties, concluded that the agreement did not meet the "better off overall test". The Commission found that the agreement did not provide employees with a sufficient improvement in their terms and conditions of employment to be considered "better off overall". Furthermore, the Commission determined that certain provisions of the agreement were not in good faith, as they did not adequately protect employees' rights and interests. Based on these findings, the Commission rejected the application for approval of the agreement.

As a result of the Commission's decision, the application for approval of the GT Jeffreys Developments Enterprise Agreement 2016 was dismissed. The agreement was not approved, and the parties were directed to return to the negotiating table to address the issues identified by the Commission. The Commission's decision highlighted the importance of ensuring that enterprise agreements meet the legal standards set out in the Fair Work Act, particularly in relation to fairness and good faith.

G T Jeffreys Developments Pty Ltd T/A GT Jeffrey’s Building Contractors

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established