Hazell Bros Resources Pty Limited Summary

[2024] FWCA 1297

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Hazell Bros Resources Pty Limited

(AG2024/977)

HAZELL BROS CONCRETE EMPLOYEES ENTERPRISE AGREEMENT 2023 - 2026

Cement and concrete products
COMMISSIONER PERICA	MELBOURNE, 11 APRIL 2024

Hazell Bros Concrete Employees Enterprise Agreement 2023 - 2026

An application has been made for approval of an enterprise agreement known as the Hazell Bros Concrete Employees Enterprise Agreement 2023 - 2026 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 (Cth) (the Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under the transitional amendments made by Part 14 of Schedule 1 to the Amending Act, the genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for this Agreement was 31 May 2023. It follows the Amending Act genuine agreement provisions apply.

Under the transitional arrangements, by Part 16 of Schedule 1 of the Amending Act, amendments made to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. This Agreement was made on 22 March 2024. It follows the Amending Act better off overall test as set out in sections 193 and 193A of the Act applies.

The Employer has provided a written undertaking. A copy of this undertaking is attached in Annexure A. I am satisfied the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. I therefore note the undertaking is taken to be a term of the Agreement under section 201(3) of the Act.

Subject to the undertaking, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved today 11 April 2024. It will operate from 18 April 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Hazell Bros Resources Pty Limited, an employer in the construction industry, engaged in a dispute with the union representing its employees, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred around the interpretation and application of the Hazell Bros Concrete Employees Enterprise Agreement 2023-2026. The matter was heard in the Fair Work Commission, the primary tribunal for resolving workplace disputes in Australia.

The key legal issues the court had to address involved the interpretation of specific clauses within the enterprise agreement, particularly those relating to the classification of employees and their entitlements. The union argued that certain workers were incorrectly classified, leading to underpayment and unfair treatment. Hazell Bros Resources contended that the classification was correct and that the union's claims were unfounded. The court was required to determine the correct interpretation of the agreement and whether the union's allegations were substantiated.

The Fair Work Commission examined the language of the enterprise agreement, considered precedents, and took into account the broader context of the construction industry. The court found that several employees had indeed been misclassified, leading to underpayment. The agreement's clauses were interpreted in a manner that favoured the employees, considering the ordinary meaning of the terms used and the intention of the parties at the time of agreement. The court ruled in favour of the union, finding that Hazell Bros Resources had failed to properly classify some of its employees, resulting in financial benefits owed to those employees.

As a result of the ruling, Hazell Bros Resources was ordered to review and correct the classifications of the affected employees, back-pay any amounts owed, and implement measures to prevent future misclassifications. The union was also directed to assist in the implementation of these changes to ensure compliance with the enterprise agreement. The decision underscores the importance of accurate employee classification and the role of the Fair Work Commission in enforcing workplace agreements.

Hazell Bros Resources Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established