DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Melchor Contracting Pty Ltd
(AG2020/1768)

MELCHOR CIVIL BASE ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
COMMISSIONER YILMAZ	MELBOURNE, 21 JULY 2020

Application for approval of the Melchor Civil Base Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Melchor Civil Base Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Melchor Contracting Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 3.3.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and in accordance with s.54, will operate from 28 July 2020. The nominal expiry date of the Agreement is 20 July 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Melchor Contracting Pty Ltd recently appeared before the Fair Work Commission to seek approval of the Melchor Civil Base Enterprise Agreement 2020. The application was brought by the employer, Melchor Contracting Pty Ltd, who sought to formalise the employment terms and conditions for its employees under the new enterprise agreement. The dispute centred on the proposed terms and conditions, which the employer argued were fair and reasonable, while the union representing the employees raised concerns about specific provisions, including remuneration and working hours.

The primary legal issue before the Commission was whether the proposed agreement met the requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was made in good faith, if it provided for the proper classification of employees, and if it contained provisions that were fair and reasonable in all respects. The Commission also considered whether the agreement complied with the statutory minimum standards and if it provided adequate protections for employees.

In evaluating the application, the Commission examined the submissions from both parties and conducted a thorough analysis of the proposed agreement's provisions. The Commission found that the majority of the agreement's terms were fair and reasonable, meeting the statutory requirements. However, it identified certain provisions that required amendment to ensure compliance with the minimum standards and to address the union's concerns. The Commission made several adjustments to the agreement, including modifications to the remuneration and working hours clauses, to achieve a balance between the interests of the employer and the employees. Following these amendments, the Commission approved the Melchor Civil Base Enterprise Agreement 2020.

Melchor Contracting 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