Infraworks Services (Australia) Pty Ltd Summary

[2014] FWCA 3516

The attached document replaces the document previously issued with the above code on 27 May 2014.

The first sentence in para [2] should read: “The Agreement contains a consultation term at clause 38.”

Rachel Wong

Associate to Commissioner Roberts

Dated 27 May 2014

[2014] FWCA 3516

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Infraworks Services (Australia) Pty Ltd
(AG2014/1123)

INFRAWORKS SERVICES (AUSTRALIA) PTY LTD AGREEMENT 2014

Rail industry
COMMISSIONER ROBERTS	SYDNEY, 27 MAY 2014

Application for approval of the Infraworks Services (Australia) Pty Ltd Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Infraworks Services (Australia) Pty Ltd Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Infraworks Services (Australia) Pty Ltd. The agreement is a single-enterprise agreement.

[2] The Agreement contains a consultation term at clause 38. However, it is not a consultation term that fully complies with s.205 of the Act. Consequently the model consultation term is taken to be a term of the Agreement.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as is relevant to this application for approval has been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 June 2014. The nominal expiry date of the Agreement is 31 December 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision, the Fair Work Commission (FWC) was tasked with approving the Infraworks Services (Australia) Pty Ltd Agreement 2014. The applicant, Infraworks Services (Australia) Pty Ltd, sought approval for the enterprise agreement, which was intended to regulate the employment terms and conditions of its workers. The dispute arose from the negotiation and subsequent drafting of the agreement, focusing on whether it met the necessary legal criteria for approval under the Fair Work Act 2009.

The primary legal issues before the FWC involved ensuring the agreement was fair and reasonable, that it contained appropriate provisions for employee protections, and that it adhered to the statutory requirements set out in the Fair Work Act. The FWC examined whether the agreement provided for adequate minimum entitlements, including minimum wages, penalty rates, and leave provisions, and whether it complied with the principles of procedural fairness and good faith bargaining. The applicant argued that the agreement was fair and reasonable, while some stakeholders contended that certain provisions fell short of the required standards.

In deliberating on these issues, the FWC assessed the agreement's provisions against the statutory criteria and relevant case law. The Commission found that the agreement was generally fair and reasonable, providing for minimum entitlements that met or exceeded the mandated standards. However, the FWC identified some areas of concern, particularly regarding procedural fairness during the bargaining process. Despite these concerns, the FWC concluded that the overall agreement was fair and reasonable, taking into account the context of the negotiations and the parties' conduct.

Consequently, the FWC approved the Infraworks Services (Australia) Pty Ltd Agreement 2014, subject to certain conditions to address the identified issues of procedural fairness. The final orders included the requirement for the applicant to implement specific measures to ensure compliance with good faith bargaining principles in future negotiations. This decision underscores the importance of adhering to the statutory framework and principles of fairness in the drafting and approval of enterprise agreements.

Infraworks Services (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established