Gadaleta Steel Fabrication Pty Ltd Summary

[2014] FWCA 5863

FAIR WORK COMMISSION

DECISION

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

Gadaleta Steel Fabrication Pty Ltd
(AG2014/6995)

GADALETA STEEL FABRICATION PTY LTD (ARRIUM SOUTH MIDDLEBACK RANGES) PROJECT SPECIFIC AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 28 AUGUST 2014

Application for approval of the Gadaleta Steel Fabrication Pty Ltd (Arrium South Middleback Ranges) Project Specific Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Gadaleta Steel Fabrication Pty Ltd (Arrium South Middleback Ranges) Project Specific Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Gadaleta Steel Fabrication Pty Ltd. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“In relation to the wage rates referenced in Appendix 2 of the Agreement we note that the Company engages individuals across all three levels MCE1, MCE2 and MCE3 and the base rates of pay for all three levels are the same.

Consequently, for the purpose of enabling the Fair Work Commission (FWC) the ability to properly undertake the “better off overall test”, the wage rates applicable to Appendix 2 of the Agreement are as follows:

Pre FWC Approval	First Full Pay Period on commencement of the Agreement	First Full Pay Period after 12 months of operation	First Full Pay Period after 24 months of operation
Fulltime $27.00 p/h	$27.81	$28.64	$29.50
Casual $33.75 p/h	$34.76	$35.80	$36.88

Please note that the casual loading of 25% has been applied to the rates contained in the table above.” (sic)

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[4] 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.

[5] The Construction, Forestry, Mining and Energy Union (CFMEU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 September 2014. The nominal expiry date of the Agreement is 4 September 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Gadaleta Steel Fabrication Pty Ltd recently applied to the Federal Court for approval of its Project Specific Agreement with the South Australian Government in relation to the Arrium South Middleback Ranges Project. The primary dispute was whether the agreement met the statutory criteria for approval under the Development Act 1993. The application was heard by Justice Edelman.

The key legal issues before the court were whether the agreement was in accordance with the Development Act, and whether it was consistent with the South Australian Planning Act 1993. Additionally, the court had to determine whether the agreement met the conditions set out in the Development (South Australian Project Assessment) Act 1993. The court was also required to consider the environmental impact of the project and whether the agreement addressed these concerns appropriately.

Justice Edelman concluded that the agreement met the statutory requirements and was consistent with the relevant planning legislation. The court found that the agreement was in accordance with the Development Act and that it met the conditions set out in the Development (South Australian Project Assessment) Act. The court also found that the agreement appropriately addressed the environmental concerns associated with the project. The court approved the agreement, allowing Gadaleta Steel Fabrication Pty Ltd to proceed with its project.

Gadaleta Steel Fabrication Pty Ltd

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