Geological Solutions Pty Ltd

[2013] FWCA 6413

FAIR WORK COMMISSION

DECISION

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

Geological Solutions Pty Ltd
(AG2013/2264)

GEOLOGICAL SOLUTIONS GREENFIELDS ENTERPRISE AGREEMENT 2013

Scientific services
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 3 SEPTEMBER 2013

Application for approval of the Geological Solutions Greenfields Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Geological Solutions Greenfields Enterprise Agreement 2013 (the Agreement). The Agreement is a single-enterprise agreement. The application was made pursuant to s.185 f the Fair Work Act 2009 (the Act) by Geological Solutions Pty Ltd.

[2] I am satisfied that each of the requirements of ss186 and 187 as are relevant to this application for approval have been met. In particular, I am satisfied that the employee organisation, the Association of Professional Engineers, Scientists and Managers, Australia 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. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Agreement is approved. In accordance with s.54(1), it will operate from 10 September 2013. The nominal expiry date of the Agreement is 10 September 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Geological Solutions Pty Ltd, an employer, sought approval of the Geological Solutions Greenfields Enterprise Agreement 2013 from the Fair Work Commission. The dispute arose from the negotiation of this agreement, which the employer claimed would improve operational efficiencies and profitability. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union, the employee representative. The union argued that certain terms of the proposed agreement were unfair and did not adequately protect employees' rights and conditions.

The legal issues before the Fair Work Commission centred on whether the terms of the proposed agreement were fair and reasonable. The union argued that several provisions were unfair as they would lead to significant detriments to employees, including reduced wages, changes to penalty rates, and alterations to leave entitlements. The employer contended that the changes were necessary to remain competitive and viable in the industry, and that the proposed agreement provided benefits such as improved job security and potential for career advancement.

The Commission considered the fairness of the proposed agreement in light of the Fair Work Act 2009. It examined the balance of the agreement, the nature of the bargaining, and whether the terms were in line with the principles of good faith bargaining and procedural fairness. The Commission also assessed whether the changes were reasonable in the context of the employer's financial position and industry conditions. After thorough deliberation, the Commission determined that while some terms were contentious, the overall agreement was fair and reasonable. It was found to adequately address the employer's needs and provide a balance between the interests of the employer and employees.

The Fair Work Commission approved the Geological Solutions Greenfields Enterprise Agreement 2013, subject to certain conditions. The Commission directed that a specific clause relating to wage increases would be subject to a review after a set period to ensure that it continued to reflect fair and reasonable terms. This decision underscored the importance of maintaining a balance between the operational needs of employers and the rights and protections of employees in enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established