DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kerman Contracting Pty Ltd
(AG2017/5452)

KERMAN CONTRACTING PTY LTD ENTERPRISE AGREEMENT 2017 (“THE AGREEMENT”)

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 3 APRIL 2018

Application for approval of the Kerman Contracting Pty Ltd Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Kerman Contracting Pty Ltd Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Kerman Contracting 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 April 2018. The nominal expiry date of the Agreement is 3 April 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved Kerman Contracting Pty Ltd, an employer, and the Construction, Forestry, Maritime, Mining and Energy Union, representing the employees. The dispute centred on the application for the approval of the Kerman Contracting Pty Ltd Enterprise Agreement 2017, which had been submitted to the Commission under section 231 of the Fair Work Act 2009. The union raised concerns about several aspects of the agreement, including pay rates, classification of employees, and the overall fairness of the terms.

The central legal issues the Commission had to address were whether the agreement met the criteria for approval under the Fair Work Act and if it satisfied the "better off overall test" as required by section 235 of the Act. This test requires that the agreement provides employees with terms and conditions that are at least as good as the applicable award or modern award. Additionally, the Commission considered whether the agreement provided for appropriate processes for resolving disputes and whether the agreement was made in good faith.

In determining the application, the Fair Work Commission evaluated the submissions from both parties and the evidence presented. The Commission concluded that the agreement met the statutory requirements for approval. It found that the proposed pay rates and conditions were consistent with industry standards and that the agreement provided for adequate dispute resolution processes. Importantly, the Commission was satisfied that the agreement was made in good faith and provided employees with terms and conditions that were at least as good as, if not better than, the applicable award. Therefore, the Commission approved the Kerman Contracting Pty Ltd Enterprise Agreement 2017.

The final orders of the Commission were that the agreement be approved and registered under the Fair Work Act. The agreement was to come into effect from the date of the Commission's decision, ensuring that the new terms and conditions would apply to the employees of Kerman Contracting Pty Ltd.

Kerman Contracting 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