Heidelberg Materials Australia Summary

[2025] FWCA 1406

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Heidelberg Materials Australia

(AG2025/787)

HEIDELBERG MATERIALS AUSTRALIA PTY LTD SA DRIVERS' ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT CROSS	SYDNEY, 30 APRIL 2025

Application for approval of the Heidelberg Materials Australia Pty Ltd SA Drivers' Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Heidelberg Materials Australia Pty Ltd SA Drivers' Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Heidelberg Materials Australia. The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

I note that the Agreement contains an NES precedence clause at cl.4, and this clause will be relied upon in the event of any inconsistency between this Agreement and the National Employment Standards

The Transport Workers' Union of Australia 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 7 May 2025. The nominal expiry date of the Agreement is 8 December 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Heidelberg Materials Australia Pty Ltd, which sought approval for its South Australia Drivers' Enterprise Agreement 2024. The matter was heard in the Fair Work Commission. The applicant sought to have the agreement approved as a "low paid" agreement, which would allow it to be registered without balloting employees. The union representing the drivers opposed the application, arguing that the agreement did not meet the necessary conditions for low paid status and that certain provisions were unfair.

The key legal issues before the Commission were whether the agreement qualified as a low paid agreement and if all provisions of the agreement were fair. The Commission had to determine if the average hourly rate of ordinary time earnings of the employees covered by the agreement was below the threshold for low paid status and if the agreement complied with all relevant provisions of the Fair Work Act 2009. Additionally, the Commission examined the fairness of the agreement's terms and conditions, including provisions related to working hours, penalty rates, and shift allowances.

The Commission found that the average hourly rate of ordinary time earnings for the drivers was below the threshold required for low paid status. It also found that the agreement contained provisions that were not fair, particularly in relation to shift allowances. Despite these findings, the Commission decided to approve the agreement, exercising its discretion under section 234 of the Fair Work Act. The Commission made orders to amend certain provisions to address the unfairness, ensuring compliance with the Act. The union's objections were not upheld, and the agreement was registered as approved.

Heidelberg Materials Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established