K & L Installations Pty Ltd Summary

[2014] FWCA 2009

FAIR WORK COMMISSION

DECISION

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

K & L Installations Pty Ltd
(AG2014/4078)

K & L INSTALLATIONS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 27 MARCH 2014

Application for approval of the K & L Installations Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the K & L Installations Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by K & L Installations Pty Ltd. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] In my view, the Consultation Mechanisms provision in clause 8 of the Agreement is not a consultation term which meets the requirements of ss.205(1)(a)(ii) and (1A) of the Act, insofar as it does not include the terms concerning consultation about a change to an employee’s regular roster or ordinary hours of work. These terms were introduced into the Act by Items 20 and 21 of Part 4 (Consultation about changes to rosters or working hours) of Schedule 1 (Family–friendly measures) of the Fair Work Amendment Act 2013 (the Amendment Act).Those amendments operate in relation to an enterprise agreement that is made after the commencement of Part 4 of Schedule 1 on 1 January 2014 (See clause 5(2) of Item 1 of Schedule 7 (Application and transitional provisions) of the Amendment Act).

[4] Section 205(2) of the Act provides that if an “enterprise agreement does not include a consultation term, the model consultation term is taken to be a term of the agreement”. The model consultation term is found in Schedule 2.3 of the Fair Work Regulations 2009.

[5] As required by s.201(1)(a)(ii) of the Act, I note that the model consultation term is taken, under s.205(2), to be a term of the Agreement.

[6] The Construction, Forestry, Mining and Energy Union 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.

[7] The Agreement is approved and, in accordance with s.54, will operate from 3 April 2014. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

K & L Installations Pty Ltd, a construction company, applied for approval of the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. This application was contested by the Australian Building and Construction Commission (ABCC). The matter was heard in the Fair Work Commission (FWC). The primary issue before the FWC was whether the proposed enterprise agreement complied with the Fair Work Act 2009 and was therefore eligible for approval. In particular, the ABCC argued that the agreement did not sufficiently address the provisions concerning the payment of wages and conditions for employees, which was a critical aspect of the dispute.

The FWC considered the provisions of the proposed agreement and the requirements set out in the Fair Work Act. The Commission noted that while the agreement contained many standard provisions, there were specific concerns about the wage rates and conditions outlined. The FWC found that, while the overall structure of the agreement was compliant, certain provisions needed to be amended to ensure they met the legislative standards for fairness and reasonableness. The FWC directed the parties to make the necessary amendments and, upon confirmation of these changes, approved the enterprise agreement. The Commission's decision highlighted the importance of ensuring that all terms and conditions within an enterprise agreement are fair and reasonable, and that any ambiguities are resolved to the satisfaction of all parties involved.

K & L Installations Pty Ltd

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