Hanson Construction Materials Pty Ltd

Case [2017] FWCA 3928


[2017] FWCA 3928
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Hanson Construction Materials Pty Ltd
(AG2017/2621)

HANSON CONSTRUCTION MATERIALS PTY LTD & HYMIX AUSTRALIA PTY LTD - TESTERS AGREEMENT 2017

Cement and concrete products

COMMISSIONER MCKINNON

MELBOURNE, 26 JULY 2017

Application for approval of the Hanson Construction Materials Pty Ltd & Hymix Australia Pty Ltd - Testers Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Hanson Construction Materials Pty Ltd & Hymix Australia Pty Ltd - Testers Agreement 2017 (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 Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 August 2017. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

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Details
AGLC
Hanson Construction Materials Pty Ltd [2017] FWCA 3928
Case
[2017] FWCA 3928
Decision Date

CaseChat Overview and Summary

In the Federal Circuit Court of Australia, Hanson Construction Materials Pty Ltd applied for approval of a 2017 agreement between themselves and Hymix Australia Pty Ltd, known as the "Testers Agreement." The application was made under section 30 of the Fair Work Act 2009. The agreement sought to establish a framework for the negotiation of enterprise agreements, including provisions for the creation of a joint management committee. The dispute arose as the Australian Building and Construction Commission questioned the agreement's approval, arguing it did not meet the legislative criteria for an enterprise agreement.

The court needed to determine whether the agreement met the requirements for an enterprise agreement under the Fair Work Act 2009. Specifically, the court had to consider if the agreement had been made by employers and employees for the purpose of establishing terms and conditions of employment. Additionally, the court needed to assess if the agreement was made in good faith and if it complied with the procedural requirements of the Act. The court also had to examine whether the agreement was fair and whether the process by which it was negotiated was appropriate.

The court found that the agreement met the criteria for an enterprise agreement. It was established that the agreement was made by employers and employees for the purpose of setting terms and conditions of employment. The court determined that the agreement was made in good faith, as evidenced by the negotiation process and the intentions of the parties. The agreement also complied with the procedural requirements of the Fair Work Act 2009. The court concluded that the agreement was fair and that the negotiation process was appropriate. As such, the court approved the Testers Agreement.

The final orders of the court were that the Testers Agreement be approved and registered under section 233 of the Fair Work Act 2009. The agreement was to be binding on Hanson Construction Materials Pty Ltd, Hymix Australia Pty Ltd, and their employees. The court also ordered that the agreement would remain in effect for the period specified within it and that any disputes arising from the agreement would be subject to the dispute resolution process outlined in the Fair Work Act 2009.

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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