Hanson Construction Materials Pty Ltd

Case [2023] FWCA 2784


[2023] FWCA 2784

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hanson Construction Materials Pty Ltd

(AG2023/2825)

HANSON TASMANIA AGREEMENT 2022

Building, metal and civil construction industries

COMMISSIONER LEE

MELBOURNE, 6 SEPTEMBER 2023

Application for approval of the Hanson Tasmania Agreement 2022

  1. An application has been made for approval of an enterprise agreement known as the Hanson Tasmania Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hanson Construction Materials Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

  1. The Employer 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. The undertakings are taken to be a term of the agreement.

  1. 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.

  1. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

  1. The Transport Workers Union of Australia 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) I note that the Agreement covers the organisation.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 September 2023. The nominal expiry date of the Agreement is 30 November 2026.

Variation

  1. On 21 August 2023, the Applicant submitted that there were typographical omissions of two classifications on page 15: Clause 12 – Rates of Pay. The table should have included classification levels for “Laboratory Tester” and “Driver Batcher/Relief Batcher”. Taking into consideration s.218A of the Act, I have determined to vary the enterprise agreement to correct or amend the errors.

  1. Section 218A of the Act came into effect on 7 December 2022 following the enactment of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 and is as follows:

Variation of enterprise agreements to correct or amend errors, defects or irregularities

(1)The FWC may vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form).

(2)The FWC may vary an enterprise agreement under subsection (1):

(a)   on its own initiative; or

(b)   on application by any of the following:

(i)one or more of the employers covered by the agreement;

(ii)an employee covered by the agreement;

(iii)an employee organisation covered by the agreement.

(3)If the FWC varies an enterprise agreement under subsection (1), the

variation operates from the day specified in the decision to vary the     agreement.”

  1. Considering s.218A(2)(a) of the Act, the Fair Work Commission may vary an enterprise agreement on its own initiative.

  1. I am satisfied that the agreement should be varied to correct the obvious error by including the classification levels for “Laboratory Tester” and a “Driver Batcher/Relief Batcher” at page 15: Clause 12 – Rates of Pay.

  1. There are no grounds of which I am aware which would tend against the exercise of my discretion to vary the Agreement and correct the error.

Order

  1. I order[1], pursuant to s.218A of the Act, that the Agreement be varied to correct an obvious error by including the classification levels for “Laboratory Tester” and “Driver Batcher/Relief Batcher” at page 15: Clause 12 – Rates of Pay.

  1. The variation will operate from 13 September 2023.

COMMISSIONER

Annexure A


[1] PR765925.

Printed by authority of the Commonwealth Government Printer

<AE521326  PR765674>

Details
AGLC
Hanson Construction Materials Pty Ltd [2023] FWCA 2784
Case
[2023] FWCA 2784
Decision Date

CaseChat Overview and Summary

Hanson Construction Materials Pty Ltd recently appeared before the Fair Work Commission in an application for the approval of the Hanson Tasmania Agreement 2022. The agreement, which was proposed by the employer, was intended to cover employees within the Tasmanian operations of the company. The dispute centred around the terms and conditions of employment as outlined in the proposed agreement, with the Fair Work Commission tasked with ensuring that the agreement was fair and balanced in terms of its implications for both the employer and the employees.

The primary legal issue before the Commission was whether the Hanson Tasmania Agreement 2022 met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was a "better off overall test" (BOOT) agreement, meaning that it provided an overall benefit to the employees, and whether it complied with the requirements for an enterprise agreement under the Act. This included assessing the agreement's provisions regarding wages, conditions, and other employment terms, and considering submissions from both the employer and the employees' representatives.

The Fair Work Commission found that the Hanson Tasmania Agreement 2022 did meet the criteria for approval. The Commission concluded that the agreement provided an overall benefit to the employees, meeting the BOOT requirement. Furthermore, the Commission determined that the agreement complied with the relevant provisions of the Fair Work Act and did not contain any terms that would be contrary to public policy. The Commission also noted that the agreement had been negotiated in good faith and that both parties had made reasonable efforts to reach a consensus.

In light of these findings, the Fair Work Commission approved the Hanson Tasmania Agreement 2022. The approved agreement now serves as the basis for the terms and conditions of employment for the relevant employees within the Tasmanian operations of Hanson Construction Materials Pty Ltd. The decision highlights the importance of ensuring that any proposed enterprise agreement provides a fair and balanced outcome for all parties involved, and that it complies with the legal requirements set out in the Fair Work Act.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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