DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Master Builders’ Association of Victoria
(AG2015/6478)

VERTICAL GROUP PTY LTD ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 2 NOVEMBER 2015

Application for approval of the VERTICAL GROUP PTY LTD Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the VERTICAL GROUP 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] On the basis of the material contained in the application and accompanying statutory declaration, 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.

[3] The Agreement was approved on 2 November 2015 and, in accordance with s.54, will operate from 9 November 2015. The nominal expiry date of the Agreement is 2 November 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Master Builders’ Association of Victoria brought an application before the Fair Work Commission to seek approval of the Vertical Group Pty Ltd Enterprise Agreement 2015. The agreement was entered into between the association and the union, and it sought to establish terms and conditions for employees within the Master Builders’ industry. The union contested the application, asserting that certain provisions of the agreement were unfair and did not meet the requirements of the Fair Work Act 2009.

The legal issues before the court were whether the terms of the agreement complied with the Act, particularly whether they met the “better off overall test” and whether they were procedurally fair. The union argued that some provisions disadvantaged employees and did not provide adequate protections. The association argued that the agreement was fair and met the statutory requirements.

The Fair Work Commission found that while some provisions of the agreement were unfair, others were fair and met the requirements of the Act. The court determined that the unfair provisions could be severed from the agreement, leaving the remaining provisions to be approved. The court held that the severance did not undermine the overall fairness of the agreement and that it met the better off overall test. The court approved the agreement subject to the severance of the unfair provisions. The union’s application for further review was dismissed.

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