Merit Lining Systems Pty Ltd

[2014] FWCA 3327

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Merit Lining Systems Pty Ltd
(AG2014/1083)

MERIT LINING SYSTEMS ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 20 MAY 2014

Application for approval of the Merit Lining Systems Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Merit Lining Systems Ichthys Onshore Construction Greenfields Agreement (the Greenfields Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss. 186, 187, 188 and 193(3) of the Act as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, the Construction, Forestry, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia have given notice under s.187(5)(a) of the Act that they are employee organisations covered by the Greenfields Agreement and entitled to represent the interests of employees who will be covered by the Greenfields Agreement.

[4] I am satisfied that each of the employee organisations are in fact entitled to represent the interests of employees to be covered by the Greenfields Agreement and that pursuant to s.187(5)(b) of the Act that it is in the public interest to approve the Greenfields Agreement.

[5] I am satisfied that the parties to the Greenfields Agreement are aware that the National Employment Standards form the minimum requirements in regards to the provisions of the Greenfields Agreement.

[6] The Agreement is approved. In accordance with s.54(1) of the Act it will operate from 27 May 2014. The nominal expiry date of the Agreement is 27 May 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Merit Lining Systems Pty Ltd recently appeared before the Fair Work Commission in an application to approve the Merit Lining Systems Ichthys Onshore Construction Greenfields Agreement. The applicant, Merit Lining Systems, is a construction company involved in the Ichthys Onshore Construction project. The dispute centred around whether the proposed agreement was appropriate for the workforce involved in the project. The Fair Work Commission was tasked with determining if the agreement met the necessary criteria under the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed agreement provided a safety net of minimum entitlements for employees, complied with the Good Faith Bargaining (GFB) provisions, and met the criteria for a Greenfields agreement. The Commission examined if the agreement included essential minimum terms and conditions, such as wages, leave entitlements, and other employment standards, and if it was negotiated in good faith. Additionally, the Commission had to assess whether the agreement appropriately reflected the unique circumstances of a Greenfields project, where the employer establishes a new workplace with no pre-existing workforce.

The Fair Work Commission concluded that the proposed agreement met all necessary requirements. The agreement was found to provide a safety net of minimum entitlements that were no less favourable than the applicable awards or registered agreements. The Commission determined that the agreement was negotiated in good faith, as it was a result of comprehensive bargaining between the parties. The agreement was also deemed suitable for a Greenfields project, as it addressed the unique aspects of establishing a new workplace. Consequently, the Commission approved the Merit Lining Systems Ichthys Onshore Construction Greenfields Agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established