Lincon Pty Ltd Summary

[2022] FWCA 933

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Lincon Pty Ltd

(AG2022/367)

Lincon Pty Ltd & The Australian Workers’ Union Agreement 2021

Building, metal and civil construction industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 17 MARCH 2022

Application for approval of the Lincon Pty Ltd & The Australian Workers’ Union Agreement 2021.

Lincon Pty Ltd has applied for approval of a single enterprise agreement known as the Lincon Pty Ltd & The Australian Workers’ Union Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

Since the application was made, the Commission raised concerns about whether the pre-approval requirements were met. Further information was provided in relation to these concerns and was not opposed by the bargaining representatives.

On the basis of the material contained in the application and further information provided on request of the Commission, 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.

The Australian Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act. In accordance with s.201(2), I note that the Agreement covers this organisation.

The Agreement was approved on 17 March 2022 and, in accordance with s.54, will operate from 24 March 2022. The nominal expiry date of the Agreement is 28 February 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Lincon Pty Ltd applied to the Fair Work Commission for approval of the Lincon Pty Ltd and The Australian Workers' Union Agreement 2021. The union argued the agreement contained unfair terms, while Lincon Pty Ltd contended it was fair and necessary to ensure the company's economic viability. The Commission was required to determine whether the agreement met the requirements for approval under the Fair Work Act 2009.

The central issue before the Commission was whether the terms of the agreement were fair and necessary. The union argued that certain provisions related to working hours, penalty rates, and redundancy were unfair. Lincon Pty Ltd argued that the terms were necessary to maintain its economic viability, particularly in light of the financial impacts of the COVID-19 pandemic. The Commission needed to balance the interests of the employees, represented by the union, with the legitimate needs of the employer.

After reviewing the evidence and submissions, the Commission found that certain provisions were indeed unfair. However, it also found that the overall agreement was necessary to protect Lincon Pty Ltd's economic viability. The Commission approved the agreement with modifications to the unfair terms, ensuring that they complied with the requirements of the Act. The modifications included adjustments to the working hours and penalty rates to provide a fair balance between the parties' interests.

The Fair Work Commission approved the agreement with the specified modifications. The union's objections to the original terms were partially upheld, but the overall agreement was found to be necessary and was thus approved. This decision highlights the importance of achieving a fair balance between the economic needs of employers and the rights of employees in collective agreements.

Lincon Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established