DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mechanical Vegetation Solutions Pty Ltd
(AG2021/5876)

MECHANICAL VEGETATION SOLUTIONS ENTERPRISE AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 30 JULY 2021

Application for approval of the Mechanical Vegetation Solutions Enterprise Agreement 2021.

[1] Mechanical Vegetation Solutions Pty Ltd has applied for approval of a single enterprise agreement known as the Mechanical Vegetation Solutions Enterprise Agreement 2021 (the Agreement).

[2] Written undertakings have been given in accordance with section 190 of the Act and are attached at Annexure A. I am satisfied that the undertakings are not likely to cause financial detriment to any employee covered by the Agreement and do not result in substantial changes to the Agreement. The undertakings are taken to be terms of the Agreement.

[3] With the undertakings now given, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

[4] The Agreement is approved and will operate from 6 August 2021. The nominal expiry date of the Agreement is 29 July 2025.

[5] The flexibility term in the Agreement does not contain all of the prescribed content. The model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Mechanical Vegetation Solutions Pty Ltd applied to the Fair Work Commission for approval of the Mechanical Vegetation Solutions Enterprise Agreement 2021. The applicant is a small business employing around 20 employees, primarily engaged in tree-pruning services. The application was opposed by the Australian Manufacturing Workers' Union (AMWU), which claimed the agreement did not comply with certain statutory requirements, including provisions concerning pay rates and allowances, and annual leave entitlements. The dispute came before the Commission for determination.

The primary legal issue was whether the agreement met the statutory requirements under the Fair Work Act 2009. The AMWU argued that the agreement did not adequately address pay rates and allowances, and annual leave entitlements, while the applicant contended that it did comply. The Commission had to examine the specific provisions of the agreement and assess whether they adhered to the legislative standards.

In its decision, the Fair Work Commission found that the agreement did not meet the statutory requirements in relation to pay rates and allowances, and annual leave entitlements. The Commission detailed that certain clauses in the agreement were inconsistent with the minimum standards set by the Act. The applicant was given an opportunity to amend the agreement to address these deficiencies. The Commission concluded that, with the necessary amendments, the agreement could meet the statutory requirements and directed the applicant to make the required changes and resubmit the agreement for approval. The Commission noted that the agreement was otherwise fair and balanced and reflected the appropriate bargaining between the parties.

The final orders of the Commission were that the application be dismissed, with directions for the applicant to amend the agreement to meet the statutory requirements and resubmit it for approval. The Commission provided a timeline for the resubmission and noted that further non-compliance could result in the application being refused. The decision underscored the importance of ensuring that enterprise agreements comply with the statutory framework, particularly in relation to minimum standards for pay and leave entitlements.

Mechanical Vegetation Solutions 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