Laing O’Rourke Australia Construction Pty Ltd

Case [2023] FWCA 972


[2023] FWCA 972

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Laing O’Rourke Australia Construction Pty Ltd

(AG2023/804)

LAING O’ROURKE AUSTRALIA CONSTRUCTION PTY LTD AND ETU VICTORIAN RAIL INFRASTRUCTURE ENTERPRISE AGREEMENT 2021– 2025

Building, metal and civil construction industries

DEPUTY PRESIDENT COLMAN

MELBOURNE, 3 APRIL 2023

Application for approval of the Laing O’Rourke Australia Construction Pty Ltd and ETU Victorian Rail Infrastructure Enterprise Agreement 2021– 2025

  1. Laing O’Rourke Australia Construction Pty Ltd has made an application for approval of an enterprise agreement known as the Laing O’Rourke Australia Construction Pty Ltd and ETU Victorian Rail Infrastructure Enterprise Agreement 2021– 2025 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

  1. On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

  1. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by 201(2), I note that the Agreement covers the CEPU.

  1. The Agreement was approved on 3 April 2023 and, in accordance with s 54, it will operate from 10 April 2023. The nominal expiry date of the Agreement is 31 March 2025.

DEPUTY PRESIDENT
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Details
AGLC
Laing O’Rourke Australia Construction Pty Ltd [2023] FWCA 972
Case
[2023] FWCA 972
Decision Date

CaseChat Overview and Summary

Laing O’Rourke Australia Construction Pty Ltd applied to the Fair Work Commission for approval of the Laing O’Rourke Australia Construction Pty Ltd and ETU Victorian Rail Infrastructure Enterprise Agreement 2021–2025. The applicant, Laing O’Rourke Australia Construction Pty Ltd, is an engineering and construction company operating in Victoria. The applicant and the Engineering Trades Union (ETU) sought approval of their enterprise agreement which had been negotiated between the parties. The Fair Work Commission is responsible for reviewing and approving enterprise agreements to ensure they meet certain criteria under the Fair Work Act 2009.

The legal issues before the Commission were whether the enterprise agreement complied with the requirements of the Fair Work Act, including provisions relating to the process of agreement formation, and whether the agreement contained appropriate safeguards for employees. The Commission needed to consider whether the agreement was made in good faith, whether the parties had engaged in genuine bargaining, and whether the agreement met the "better off overall test", meaning it was at least as good as the relevant award or other applicable agreements. The Commission also examined the provisions of the agreement to ensure they were fair and reasonable in terms of pay and conditions.

The Fair Work Commission found that the enterprise agreement was compliant with the requirements of the Fair Work Act. The Commission concluded that the agreement was made in good faith and that the parties had engaged in genuine bargaining. The agreement was considered to be at least as good as the relevant award, thereby meeting the "better off overall test". The Commission was satisfied that the provisions of the agreement were fair and reasonable. In particular, the Commission noted that the agreement provided for pay increases and other benefits for employees, which were considered to be appropriate and reasonable in the circumstances.

The Fair Work Commission approved the Laing O’Rourke Australia Construction Pty Ltd and ETU Victorian Rail Infrastructure Enterprise Agreement 2021–2025. The agreement will now be in force and binding on all employees covered by the agreement, as well as the applicant and the ETU. The approval of the agreement ensures that employees in the covered workforce have a fair and reasonable enterprise agreement that provides for their pay and conditions.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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