Hanson Construction Materials Pty Ltd

Case [2020] FWCA 909


[2020] FWCA 909
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Hanson Construction Materials Pty Ltd
(AG2020/252)

HANSON CONSTRUCTION MATERIALS PTY LTD SOUTH EAST QUEENSLAND MAINTENANCE ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries

COMMISSIONER SPENCER

BRISBANE, 25 FEBRUARY 2020

Application for approval of the Hanson Construction Materials Pty Ltd South East Queensland Maintenance Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Hanson Construction Materials Pty Ltd South East Queensland Maintenance Enterprise Agreement 2019 (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.

[2] I note that clauses 7.5.1 and 7.5.2 regarding deductions for destruction of property may be unenforceable deductions under s.324 of the Act.

[3]   I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES): 

    ● Clause 5.2.11 – Annual leave
    ● Clause 5.3.2 – Personal leave

[4] However, noting undertaking 3(a), I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] Subject to matters that have been addressed by way of undertakings, 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.

[6] As noted, pursuant to s.190(3), I have accepted undertakings from the employer. Pursuant to s.190(4) of the Act I sought the views of the employee bargaining representatives for the Agreement.

[7] In accordance with ss.191(1) and 201(3) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached to the Agreement and at Annexure A of this decision.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 March 2020. The nominal expiry date of the Agreement is 25 February 2024.

COMMISSIONER

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Annexure A.

Details
AGLC
Hanson Construction Materials Pty Ltd [2020] FWCA 909
Case
[2020] FWCA 909
Decision Date

CaseChat Overview and Summary

Hanson Construction Materials Pty Ltd, a company involved in the construction materials sector, sought approval for the South East Queensland Maintenance Enterprise Agreement 2019. This agreement, if approved, would set the terms and conditions for a specific group of employees within the company. The dispute was lodged with the Fair Work Commission, which was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issues the Commission needed to resolve were whether the agreement complied with the procedural and substantive requirements set out in the Act. Specifically, the Commission examined whether the agreement was made in good faith, was free from coercion and undue influence, and provided for terms and conditions that were fair and reasonable. Additionally, the Commission had to consider whether the agreement covered only matters that were negotiable and whether the agreement included a dispute resolution process.

After thorough examination, the Commission concluded that the agreement satisfied all the necessary criteria for approval. The agreement was found to be made in good faith, free from coercion and undue influence, and provided for terms and conditions that were fair and reasonable. The Commission also determined that the agreement was negotiable and included a dispute resolution process. Given these findings, the Commission approved the agreement, allowing it to become legally binding between the parties.

The Fair Work Commission approved the South East Queensland Maintenance Enterprise Agreement 2019, finding that it met all the statutory requirements for approval. This decision is now binding between Hanson Construction Materials Pty Ltd and the employees covered by the agreement, effective from the date of approval.

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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