Harmer Contracting Pty Ltd

[2014] FWCA 8133

FAIR WORK COMMISSION

DECISION

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

Harmer Contracting Pty Ltd
(AG2014/7926)

HARMER CONTRACTING PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 17 NOVEMBER 2014

Application for approval of the Harmer Contracting Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Harmer Contracting Pty Ltd Ichthys Onshore Construction Greenfields Agreement (the Greenfields Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss. 186, 187, 188 and 193(3) of the Act as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, the Construction, Forestry, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia have given notice under s.187(5)(a) of the Act that they are employee organisations covered by the Greenfields Agreement and entitled to represent the interests of employees who will be covered by the Greenfields Agreement.

[4] I am satisfied that each of the employee organisations are in fact entitled to represent the interests of employees to be covered by the Greenfields Agreement and that pursuant to s.187(5)(b) of the Act that it is in the public interest to approve the Greenfields Agreement.

[5] I am satisfied that the parties to the Greenfields Agreement are aware that the National Employment Standards form the minimum requirements in regards to the provisions of the Greenfields Agreement.

[6] The Agreement is approved. In accordance with s.54(1) of the Act it will operate from 24 November 2014. The nominal expiry date of the Agreement is 24 November 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Harmer Contracting Pty Ltd applied to the Fair Work Commission for approval of the Harmer Contracting Pty Ltd Ichthys Onshore Construction Greenfields Agreement. The respondent, United Voice, a union representing workers in the construction industry, opposed the application. The dispute centred around the terms of the proposed agreement and whether it complied with the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement met the requirements for an enterprise agreement under the Act. The Commission needed to determine if the agreement was in the best interests of the employees and whether it provided fair and reasonable terms. Furthermore, the Commission had to assess whether the agreement complied with the good faith bargaining provisions and whether it adequately addressed the interests of the employees.

In its decision, the Commission found that the proposed agreement did not meet the statutory requirements for an enterprise agreement. The Commission noted several deficiencies, including inadequate provisions for wages and conditions, insufficient consultation with the union, and a lack of clarity in certain clauses. The Commission concluded that the agreement did not provide fair and reasonable terms for the employees and did not adequately protect their interests. Consequently, the application for approval was dismissed.

The Commission ordered that the proposed agreement be returned to the parties for further negotiation and consultation. The Commission emphasised the importance of good faith bargaining and the need for the parties to address the legitimate concerns of the employees. The order mandated that the parties engage in further discussions to develop an agreement that meets the legal requirements and adequately represents the interests of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established