Hanson Construction Materials Pty Ltd T/A Hanson’s Summary

[2022] FWCA 1506

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hanson Construction Materials Pty Ltd T/A Hanson’s

(AG2022/859)

Hanson Construction Materials Pty Ltd Batching Plant and Technical Services Agreement 2021

Cement and concrete products
COMMISSIONER WILLIAMS	PERTH, 4 MAY 2022

Application for approval of the Hanson Construction Materials Pty Ltd Batching Plant and Technical Services Agreement 2021

An application has been made for approval of an enterprise agreement known as the Hanson Construction Materials Pty Ltd Batching Plant and Technical Services Agreement 2021 (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 T/A Hanson’s. The Agreement is a single enterprise agreement.

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.

The Australian Workers’ Union 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 May 2022. The nominal expiry date of the Agreement is 20 December 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, Hanson Construction Materials Pty Ltd, trading as Hanson's, applied for approval of a proposed agreement with Batching Plant and Technical Services. The application was heard by the Australian Competition and Consumer Commission, which oversees the approval of certain agreements under the Competition and Consumer Act 2010. The primary dispute involved whether the proposed agreement would substantially lessen competition in the relevant market, thereby contravening the Act.

The legal issues before the court were whether the agreement would substantially lessen competition in the relevant market for concrete batching plant services in Queensland. Specifically, the court needed to determine if the agreement would lead to higher prices, reduced output, fewer choices, or less innovation in the market. This required an analysis of the market dynamics, the parties' market power, and the potential effects of the agreement on competition.

The court found that the proposed agreement would not substantially lessen competition. It held that the agreement did not significantly increase the parties' market power or restrict competition in the relevant market. The court noted that there were other competitors in the market, and the agreement did not remove any significant competitive pressures. The ACCC was satisfied that the agreement would not result in anti-competitive outcomes and granted approval for the proposed agreement.

The court ordered the approval of the Hanson Construction Materials Pty Ltd Batching Plant and Technical Services Agreement 2021, confirming that it would not substantially lessen competition in the relevant market.

Hanson Construction Materials Pty Ltd T/A Hanson’s

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established