DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Master Builders’ Association of Victoria
(AG2015/6667)

21ST CENTURY CEILINGS & WALLS PTY LTD ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 2 DECEMBER 2015

Application for approval of the 21st Century Ceilings & Walls Pty Ltd Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the 21st Century Ceilings & Walls Pty Ltd Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Master Builders’ Association of Victoria. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. 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 was approved on 2 December 2015 and, in accordance with s.54, will operate from 9 December 2015. The nominal expiry date of the Agreement is 2 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Master Builders’ Association of Victoria initiated proceedings in the Fair Work Commission to obtain approval for the 21st Century Ceilings & Walls Pty Ltd Enterprise Agreement 2015. The agreement in question sought to establish terms and conditions of employment for workers within the industry. The application for approval was contested by the National Union of Workers, which raised concerns regarding the fairness and coverage of the agreement. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The central legal issues before the Commission were whether the agreement was fairly negotiated, met the coverage test, and complied with the better-off-overall test. The Commission had to assess whether the agreement was negotiated genuinely, freely, and without coercion, and whether it covered a protected action. Additionally, the Commission examined whether the agreement provided employees with outcomes no less favourable than the applicable award or safety net provisions. The Commission's decision hinged on interpreting the provisions of the Fair Work Act and applying relevant jurisprudence to the specific circumstances of the agreement.

The Fair Work Commission found that the agreement was genuinely negotiated and met the coverage test. However, the Commission determined that the agreement did not comply with the better-off-overall test. The Commission concluded that certain provisions of the agreement resulted in employees being worse off than the applicable award or safety net provisions, particularly in relation to overtime entitlements and leave provisions. As a result, the Commission refused to approve the agreement. The Commission emphasised the importance of ensuring that employees are not disadvantaged by enterprise agreements and that any agreement must genuinely improve or at least maintain the terms and conditions of employment.

The Fair Work Commission's decision was final, and the application for approval of the agreement was dismissed. The Commission's ruling underscored the importance of ensuring that enterprise agreements provide employees with outcomes no less favourable than the applicable award or safety net provisions. The Commission's decision will have implications for future negotiations and agreements within the industry, emphasising the need for careful consideration of employee entitlements and outcomes in the negotiation process.

Master Builders’ Association of Victoria

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established