Heading Contractors Pty Ltd

[2013] FWCA 658

FAIR WORK COMMISSION

DECISION

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

Heading Contractors Pty Ltd
(AG2013/4350)

HEADING CONTRACTORS PTY LTD (AUSTRALIA) ENTERPRISE AGREEMENT 2012

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 1 FEBRUARY 2013

Application for approval of the Heading Contractors Pty Ltd (Australia) Enterprise Agreement 2012.

[1] An application has been made for approval of an enterprise agreement known as the Heading Contractors Pty Ltd (Australia) Enterprise Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Heading Contractors Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The employer has provided an undertaking in the following terms:

“Heading Contractors Pty Ltd undertakes that in lieu of the rates of pay contained in the ‘Heading Contractors Pty Ltd (Australia) Enterprise Agreement 2012’ the following rates of pay will apply for casual employees:

Classification Casual rates Classification Casual Rates

Labourer $30.00 C14 $27.00

2nd Class Welder $31.00 C13 $27.50

Rigger/Dogman $33.55 C12 $28.50

Trade $33.55 C11 $29.50

Multiskilled $33.55 C10 $31.00

Crane Driver $34.00 C9 $32.00

C8 $33.00

Entry Level $28.50 C7 $34.00

Level 1 $30.00 C6 $35.50

Level 2 $31.00 C5 $36.00

Level 3 $32.00 C4 $37.00

Level 4 $34.00 C3 $39.00

Level 5 $36.50 C2(a) $40.00

Level 6 $38.00 C2(b) $42.00

Level 7 $40.00

The above rates of pay are based on a 2:1 roster (i.e. 14 days on/7 days off). In the event that roster changes that are less beneficial to the employees are implemented, Heading Contractors Pty Ltd undertakes to review the casual rates of pay to ensure that the rates continue to pass the better off overall test.

Whilst the rates of pay are calculated on a 2:1 roster, nothing in this undertaking prevents Heading Contractors from implementing alternative rosters, in line with the terms of the Agreement.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the parties is attached to the Agreement as Annexure A.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 February 2013. The nominal expiry date of the Agreement is 9 February 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Heading Contractors Pty Ltd, the applicant sought approval of the Heading Contractors Pty Ltd (Australia) Enterprise Agreement 2012. The dispute arose between Heading Contractors Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union. The application was heard in the Fair Work Commission of Australia. The primary legal issue was whether the enterprise agreement met the requirements of the Fair Work Act 2009, specifically sections concerning the approval process and compliance with the Fair Work (Registered Organisations) Act 2009.

The court examined the agreement to ensure it complied with the statutory requirements, including provisions for minimum entitlements, workplace relations, and the rights of employees. The agreement was also evaluated to ensure it was negotiated in good faith and did not undermine the protection of employees’ rights. The court considered submissions from both parties, focusing on the compliance and fairness of the agreement. The applicant argued that the agreement was a fair and reasonable one, negotiated appropriately and in line with legal standards. The union contended that certain clauses were not in the best interest of the employees and contravened statutory provisions.

The Fair Work Commission found that the enterprise agreement was compliant with the relevant sections of the Fair Work Act 2009. The court was satisfied that the agreement had been negotiated in good faith and did not undermine the protection of employees' rights. The provisions of the agreement were deemed to be fair and reasonable, and the agreement was approved. The union's objections were not upheld, and the application was successful. The court ordered that the Heading Contractors Pty Ltd (Australia) Enterprise Agreement 2012 be approved and registered with the Fair Work Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established