DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ikon Civil Pty Ltd T/A Ikon Civil Pty Ltd
(AG2020/1841)

IKON CIVIL PTY LTD ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 14 JULY 2020

Application for approval of the Ikon Civil Pty Ltd Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Ikon Civil Pty Ltd Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ikon Civil Pty Ltd T/A Ikon Civil Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 July 2020. The nominal expiry date of the Agreement is 14 July 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case of Ikon Civil Pty Ltd T/A Ikon Civil Pty Ltd, the Fair Work Commission was tasked with approving an enterprise agreement between the employer, Ikon Civil Pty Ltd, and its employees, as represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The agreement, dated 2020, was the subject of contention due to its terms and conditions, which were argued to be unfair by the union on behalf of its members. The matter was brought before the Commission to determine whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issues the Commission had to address were whether the agreement contained genuine bargaining between the parties, was free from coercion or undue influence, and was compliant with the provisions of the Fair Work Act, including fairness and benefit tests. The CFMEU argued that the agreement failed to provide adequate benefits to employees and contained terms that were not fairly negotiated. The employer, on the other hand, asserted that the agreement was the result of genuine bargaining and was fair and reasonable.

The Fair Work Commission, after considering the submissions from both parties, determined that the agreement did not meet the statutory requirements for approval. The Commission found that there were significant deficiencies in the bargaining process, which led to terms that were not fairly negotiated and were not in the best interests of the employees. The Commission emphasised that for an enterprise agreement to be approved, it must not only be the result of genuine bargaining but also provide a fair and reasonable benefit to the employees. Given the evidence presented, the Commission concluded that the agreement did not meet these criteria and, therefore, could not be approved. Consequently, the application for approval was dismissed.

Ikon Civil Pty Ltd T/A Ikon Civil Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established