DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mandex Pty Ltd T/A High-Craft Windows
(AG2018/1665)

HIGH-CRAFT WINDOWS ENTERPRISE AGREEMENT 2018-2021

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 18 SEPTEMBER 2018

Application for approval of the High-Craft Windows Enterprise Agreement 2018-2021.

[1] An application has been made for approval of an enterprise agreement known as the High-Craft Windows Enterprise Agreement 2018-2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mandex Pty Ltd T/A High-Craft Windows. The Agreement is a single enterprise agreement.

[2] Written undertakings have been given in accordance with s.190. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 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 25 September 2018. The nominal expiry date of the Agreement is 15 April 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Mandex Pty Ltd trading as High-Craft Windows, sought approval of the High-Craft Windows Enterprise Agreement 2018-2021 from the Fair Work Commission. The respondents, represented by the Building and Construction General On-Site Union, challenged the agreement on various grounds including the adequacy of wage rates and the process through which the agreement was reached. The matter was heard in the Fair Work Commission, which has the authority to approve, reject, or seek further information on enterprise agreements.

The central legal issues before the Commission were whether the agreement was made in accordance with the relevant provisions of the Fair Work Act 2009, and whether it met the 'better off overall test' as required by the Act. The Commission needed to examine if the agreement was genuinely negotiated and whether it provided employees with a safety net of minimum wages and conditions that were at least equivalent to those provided by the applicable awards.

In delivering its decision, the Commission found that the agreement was not made in accordance with the statutory requirements as it did not adequately address the wage rates and conditions specified under the relevant awards. Additionally, the Commission was not satisfied that the agreement provided employees with a safety net of minimum wages and conditions that were at least equivalent to those provided by the awards. Consequently, the application for approval was dismissed. The Commission noted that while the agreement contained provisions that were better than the applicable awards, they did not sufficiently cover all employees and conditions, falling short of the 'better off overall test'.

As a result of the decision, the Fair Work Commission did not approve the High-Craft Windows Enterprise Agreement 2018-2021. The Commission directed the parties to further negotiate the agreement to address the identified deficiencies, particularly concerning wage rates and the negotiation process. The Commission emphasised the importance of ensuring that the agreement genuinely reflects the terms agreed upon by the parties and complies with the statutory requirements under the Fair Work Act 2009.

Mandex Pty Ltd T/A High-Craft Windows

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established