Laing O’Rourke Australia Construction Pty Ltd

Case [2022] FWCA 38


[2022] FWCA 38

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Laing O’Rourke Australia Construction Pty Ltd

(AG2021/8812)

laing o’rourke australia construction pty ltd and cfmeu (wa) and Awu Western australia civil projects agreement 2020

Building, metal and civil construction industries

COMMISSIONER MATHESON

SYDNEY, 10 JANUARY 2022

Application for approval of the Laing O’Rourke Australia Construction Pty Ltd and CFMEU (WA) and AWU Western Australia Civil Projects Agreement 2020.

  1. An application has been made for approval of greenfields agreement known as the Laing O’Rourke Australia Construction Pty Ltd and CFMEU (WA) and AWU Western Australia Civil Projects Agreement 2020 (Agreement). The application was made by Laing O’Rourke Australia Construction Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a greenfields agreement.

  1. This is a greenfields agreement that meets the requirements of s.172(2)(b) of the Act.

  1. The Applicant applied for a correction to clause 12.6(a) of the Agreement to replace the words ‘deduct payment’ with ‘not make payment’. I am satisfied that this amendment should be allowed and that it is appropriate to make the amendment pursuant to s.586 of the Act. I make the amendment.

  1. I observe that certain provisions of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 6.1(b) of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A of this decision (Undertakings). The views of each person I know is a bargaining representative were sought and no objections were raised. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)cause financial detriment to any employee covered by the Agreement; or

(b)result in substantial changes to the Agreement.

  1. Pursuant to s.190(3) of the Act, I accept the Undertakings.

  1. In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Maritime, Mining and Energy Union, and the Australian Workers’ Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to the work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

  1. Subject to the Undertakings, and on the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 190 of the Act as are relevant to the application for approval of the Agreement have been met.

  1. Pursuant to s.53(2)(b) of the Act, I note that the Agreement was made with the Construction, Forestry, Maritime and Energy Union and the Australian Workers’ Union, and that the Agreement covers these organisations.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 January 2022. The nominal expiry date of the Agreement is 9 January 2026.


COMMISSIONER

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Annexure A

Details
AGLC
Laing O’Rourke Australia Construction Pty Ltd [2022] FWCA 38
Case
[2022] FWCA 38
Decision Date

CaseChat Overview and Summary

Laing O’Rourke Australia Construction Pty Ltd recently sought approval for a new enterprise agreement with two unions, the Construction, Forestry, Maritime, Mining and Energy Union (WA) and the Australian Workers’ Union (WA). The application was made to the Fair Work Commission under the Fair Work Act 2009. The primary dispute concerned the terms and conditions of employment set out in the proposed agreement, with a focus on the implications for employees' wages, working hours, and other employment conditions.

The court was required to determine whether the proposed agreement met the ‘better off overall test’ under section 233 of the Fair Work Act. This test assesses whether employees are better off overall under the new agreement than they would be under the applicable award or existing agreement. Additionally, the court examined whether the agreement complied with the good faith bargaining provisions under section 230 of the Act and whether it contained any unfair provisions under section 232.

In its decision, the Fair Work Commission found that the proposed agreement met the better off overall test, as it provided employees with increased wages and improved conditions of employment. The Commission also determined that the agreement was the product of good faith bargaining and did not contain any unfair provisions. The Commission approved the Laing O’Rourke Australia Construction Pty Ltd and CFMEU (WA) and AWU Western Australia Civil Projects Agreement 2020, which will now apply to the employees of Laing O’Rourke Australia Construction Pty Ltd.

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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