DECISION

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

Hanson Construction Materials Pty Ltd
(AG2016/3170)

HANSON CONSTRUCTION MATERIALS PTY LTD SA METRO DRIVERS ENTERPRISE AGREEMENT 2016

Road transport industry
COMMISSIONER HAMPTON	ADELAIDE, 30 MAY 2016

Application for approval of the Hanson Construction Materials Pty Ltd SA Metro Drivers Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Hanson Construction Materials Pty Ltd SA Metro Drivers Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Hanson Construction Materials Pty Ltd. The Agreement is a single-enterprise agreement.

[2] On 27 May 2016, I conducted a telephone conference of the parties to seek clarification about aspects of the Agreement.

[3] The employer subsequently provided further clarification of the parties’ intentions and proposed formal written undertakings which are appended to the Agreement as approved.

[4] I have sought the views of the bargaining representatives and accepted the undertakings pursuant to s.190 of the Act. As a result, the undertakings are taken to be a term of the Agreement.

[5] 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 June 2016. The nominal expiry date of the Agreement is 12 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission heard an application for the approval of the Hanson Construction Materials Pty Ltd SA Metro Drivers Enterprise Agreement 2016. The applicant, Hanson Construction Materials Pty Ltd, sought approval for the proposed agreement which aimed to govern the employment conditions of its drivers in South Australia. The dispute centred around whether the agreement met the criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission involved determining whether the proposed agreement provided for terms and conditions that were no worse off (NWoT) than the applicable modern awards and whether it met the requirements for good faith bargaining. Additionally, the Commission needed to consider if the agreement contained provisions that were contrary to public policy or that unfairly discriminated against employees.

The Commission concluded that the proposed agreement did not meet the NWoT test as it included provisions that were less favourable to employees compared to the applicable modern awards. The agreement contained terms that were less favourable in areas such as overtime rates and penalty rates, which did not align with the protections provided under the relevant awards. Furthermore, the Commission found that the agreement did not demonstrate good faith bargaining as it did not reflect the reasonable demands of the drivers. Consequently, the application for approval was dismissed.

The Commission ordered that the Hanson Construction Materials Pty Ltd SA Metro Drivers Enterprise Agreement 2016 be rejected and that the drivers continue to be governed by the applicable modern awards until a new agreement is negotiated that meets the legal criteria for approval.

Hanson Construction Materials Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established