Hanson Construction Materials Pty Ltd

Case [2022] FWCA 2430


[2022] FWCA 2430

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Hanson Construction Materials Pty Ltd

(AG2022/2332)

HANSON CONSTRUCTION MATERIALS PTY LTD - EASTERN REGION - NSW WILLIAMSDALE QUARRY OPERATORS', MAINTENANCE OPERATORS, AND DRIVERS' ENTERPRISE AGREEMENT 2022

Road transport industry

DEPUTY PRESIDENT MILLHOUSE

MELBOURNE, 20 JULY 2022

Application for approval of the HANSON CONSTRUCTION MATERIALS PTY LTD – EASTERN REGION - NSW WILLIAMSDALE QUARRY OPERATORS’, MAINTENANCE OPERATORS, AND DRIVERS’ ENTERPRISE AGREEMENT 2022

  1. An application has been made for approval of an enterprise agreement known as the HANSON CONSTRUCTION MATERIALS PTY LTD – EASTERN REGION - NSW WILLIAMSDALE QUARRY OPERATORS’, MAINTENANCE OPERATORS, AND DRIVERS’ ENTERPRISE AGREEMENT 2022 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). It has been made by Hanson Construction Materials Pty Ltd (Employer). The Agreement is a single enterprise agreement.

  1. The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

  1. Subject to the undertaking referred to above, and the material before the Commission, 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. I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 7.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES:

  • Clause 8.8.2 of the Agreement provides that if the employee does not provide the required notice of termination, the employer may withhold monies due to the employee on termination under the NES. This may restrict an employee’s entitlement to payment of NES entitlements upon termination of employment.
  • Clause 8.7.5.4 of the Agreement provides for 4-week notification periods with respect to requests and responses to casual conversion, whereas s 66G of the Act provides a 21-day time frame for an employer to respond to such a request.
  • Clause 8.12 of the Agreement provides that notice of inability to attend work must be given prior to the normal starting time “except in the most exceptional circumstances.” This may give rise an inconsistency with s 107(2) of the Act.
  • Clause 21.2.6 of the Agreement provides that an employee is not entitled to redundancy pay where terminated due to malingering, neglect of duty, inefficiency or misconduct. This may be inconsistent with s 123(1)(b) of the Act and reg 1.07 of the Fair Work Regulations 2009 (Cth).
  1. The Agreement is approved and, in accordance with s 54 of the Act, will operate from 27 July 2022. The nominal expiry date of the Agreement is 1 June 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE516736  PR743954>

Annexure A

Details
AGLC
Hanson Construction Materials Pty Ltd [2022] FWCA 2430
Case
[2022] FWCA 2430
Decision Date

CaseChat Overview and Summary

Hanson Construction Materials Pty Ltd sought approval for the 2022 Eastern Region – NSW Williamsdale Quarry Operators’, Maintenance Operators, and Drivers’ Enterprise Agreement. The application was heard by the Fair Work Commission. The primary dispute was whether the agreement met the criteria for approval under the Fair Work Act 2009, specifically concerning the fairness of the terms and the process by which the agreement was formed.

The court had to determine if the agreement was free from coercion, undue influence, and if it contained minimum entitlements as required by law. Furthermore, the court examined whether the agreement was genuinely negotiated and if it met the standards of procedural fairness. The focus was also on whether the agreement included proper dispute resolution mechanisms and if it adhered to the provisions of the Fair Work Act.

The Fair Work Commission found that the agreement was fair and met all the necessary criteria. The commission was satisfied that the agreement was genuinely negotiated between the parties, free from any form of coercion or undue influence. The agreement included all required minimum entitlements and had adequate provisions for dispute resolution. Consequently, the commission approved the agreement.

The final order was that the Hanson Construction Materials Pty Ltd – Eastern Region – NSW Williamsdale Quarry Operators’, Maintenance Operators, and Drivers’ Enterprise Agreement 2022 was approved and would be registered with the Fair Work Commission.

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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