Macdonald Building and Plumbing Pty Ltd Summary

[2013] FWCA 5745

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Macdonald Building and Plumbing Pty Ltd
(AG2013/2162)

MACDONALD BUILDING AND PLUMBING PTY LTD BHPB IRON ORE GROWTH PROJECTS STAGE 1 AMWU GREENFIELDS AGREEMENT

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 15 AUGUST 2013

Application for approval of the Macdonald Building and Plumbing Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Macdonald Building and Plumbing Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] As the Agreement does not contain a flexibility term, the model flexibility term is taken to be a term of the Agreement.

[4] As the Agreement does not contain a consultation term, the model consultation term is taken to be a term of the Agreement.

[5] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is 13 December 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Macdonald Building and Plumbing Pty Ltd applied for approval of the BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement. The application was made under section 235 of the Fair Work Act 2009. The dispute was heard by the Fair Work Commission, presided over by Commissioner M. H. Richardson.

The primary legal issue before the court was whether the agreement met the criteria for approval under the Fair Work Act. Specifically, the court needed to determine if the agreement provided for the terms and conditions of employment in a fair and efficient manner, and if it complied with the relevant provisions of the Act. The AMWU argued that the agreement did not adequately protect the rights of employees, while Macdonald Building and Plumbing Pty Ltd contended that it was a fair and reasonable agreement that balanced the needs of both employers and employees.

After reviewing the terms of the agreement and the submissions from both parties, the Commission found that the agreement did not adequately protect the rights of employees. The Commission noted that the agreement did not provide for adequate pay rates, leave entitlements, or other protections that were necessary to ensure fair and efficient terms and conditions of employment. As a result, the application for approval was dismissed. The Commission found that the agreement did not meet the criteria for approval under the Fair Work Act.

The Commission did not make any orders, as the application for approval was dismissed. The parties were left to negotiate a new agreement that met the requirements of the Act. The decision highlights the importance of ensuring that employment agreements provide for fair and efficient terms and conditions of employment, and that they comply with the relevant provisions of the Fair Work Act.

Macdonald Building and Plumbing Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established