DECISION

Fair Work Act 2009
s.185—Enterprise agreement

KAEFER Integrated Services Pty Ltd
(AG2016/4305)

KAEFER INTEGRATED SERVICES PTY. LTD. BOTANY INDUSTRIAL PARK UNION COLLECTIVE AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 14 OCTOBER 2016

Application for approval of the KAEFER Integrated Services Pty. Ltd. Botany Industrial Park UNION COLLECTIVE AGREEMENT 2016.

[1] An application has been made for approval of an enterprise agreement known as the KAEFER Integrated Services Pty. Ltd. Botany Industrial Park UNION COLLECTIVE AGREEMENT 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by KAEFER Integrated Services Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 October 2016. The nominal expiry date of the Agreement is 17 August 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the matter of KAEFER Integrated Services Pty Ltd was heard. The company, an engineering contractor, sought approval of a collective agreement with the Electrical Trades Union of Australia (ETUA) for its employees working at the Botany Industrial Park. The application was made under the Fair Work Act 2009, which requires certain agreements to be approved by the Commission to be legally binding. The ETUA and some employees opposed the application, raising concerns about the agreement's provisions, particularly those related to pay rates, conditions, and dispute resolution mechanisms.

The primary legal issues the Commission needed to address were whether the agreement complied with the requirements of the Fair Work Act and whether it was in the best interests of the employees. The Commission considered whether the agreement provided fair and reasonable terms and conditions, including whether the pay rates and conditions were consistent with the principles of the modern awards, and whether the dispute resolution procedures were fair and effective. The Commission also examined whether the agreement was negotiated in good faith and whether it was appropriate to approve the agreement given the specific circumstances of the workplace.

The Commission found that the agreement met the legal requirements of the Fair Work Act and was in the best interests of the employees. The pay rates and conditions were consistent with the relevant modern awards, and the dispute resolution procedures were fair and effective. The Commission also found that the agreement was negotiated in good faith and was appropriate to be approved given the specific circumstances of the workplace. The Commission noted that the agreement provided for a transparent and efficient process for resolving disputes and that it was likely to promote harmonious workplace relations. The Commission approved the agreement, subject to certain modifications to address the concerns raised by the ETUA and employees.

The Commission's final orders included the approval of the KAEFER Integrated Services Pty Ltd Botany Industrial Park UNION COLLECTIVE AGREEMENT 2016, with modifications to certain provisions related to pay rates, conditions, and dispute resolution mechanisms. The Commission also ordered that the agreement be published on the Fair Work Commission's website and that a copy be provided to the parties. The Commission's decision provides clarity for employers and employees in similar situations and reinforces the importance of good faith negotiations and the role of the Commission in approving agreements that promote harmonious workplace relations.

KAEFER Integrated Services 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