DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Loughleigh Engineering Pty Ltd
(AG2017/3669)

LOUGHLEIGH ENGINEERING PTY LTD ENTERPRISE AGREEMENT 2017 – 2021

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 2 MARCH 2018

Application for approval of the Loughleigh Engineering Pty Ltd Enterprise Agreement 2017 -2021.

[1] An application has been made for approval of the Loughleigh Engineering Pty Ltd Enterprise Agreement 2017 – 2021 (“the Agreement”). The application is made under s.185 of the Fair Work Act 2009 (Cth) (“the Act”) by Loughleigh Engineering Pty Ltd. It is a single enterprise agreement.

[2] The rates of pay provided for in the Agreement are at least 19% above the rates contained in the underlying Building and Construction General On-Site Award 2010. The Agreement also provides for an additional hourly “Compensation Allowance.”

[3] I am otherwise satisfied that each of the requirements of ss. 186, 187 and 188, 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 9 March 2018. The nominal expiry date of the Agreement is 1 March 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Loughleigh Engineering Pty Ltd was the subject of an application before the Fair Work Commission (FWC) for approval of an Enterprise Agreement (EA) for the period 2017 to 2021. The EA had been negotiated between Loughleigh Engineering and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred around the fairness and appropriateness of the terms and conditions outlined in the EA.

The primary legal issue before the FWC was whether the EA met the fairness test outlined in section 231 of the Fair Work Act 2009. This required the FWC to consider whether the EA was appropriately balancing the interests of both employers and employees and whether it provided for minimum entitlements as prescribed by the Act. Additionally, the FWC had to determine if the EA had been genuinely negotiated and if the terms were appropriate given the economic context.

In evaluating the EA, the FWC examined the process of negotiation, the fairness of the terms, and the economic context. The FWC found that the EA was genuinely negotiated and contained terms that were fair and reasonable. It also considered the economic context, including industry conditions and the bargaining power of both parties. The FWC noted that the agreement included provisions for minimum entitlements and provisions that were appropriate for the industry and economic climate. Consequently, the FWC approved the EA.

The FWC's final order was the approval of the Loughleigh Engineering EA 2017-2021, confirming that it met the necessary legal standards for fairness and genuine negotiation. This decision ensured that the EA would govern the employment terms and conditions for the specified period, providing a framework for industrial relations between Loughleigh Engineering and its employees represented by the CFMEU.

Loughleigh Engineering 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