DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Monford Group Pty Ltd
(AG2019/2125)

MONFORD GROUP EMPLOYEE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 2 AUGUST 2019

Application for approval of the Monford Group Employee Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Monford Group Employee Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Monford Group 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.

[3] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

- clause 15; and

- clause 16.2(b);

[4] However, noting clause 7 of the Agreement, I am satisfied that the beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] The Agreement was approved on 2 August 2019 and, in accordance with s.54, will operate from 9 August 2019. The nominal expiry date of the Agreement is 1 August 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Monford Group Pty Ltd sought approval of the Monford Group Employee Agreement 2019 from the Fair Work Commission. The agreement, intended to govern employment conditions for certain employees, was opposed by the Shop, Distributive and Allied Employees' Association (SDA). The dispute centred on whether the agreement provided fair and reasonable terms for the employees and complied with the relevant legislative framework.

The central legal issues were whether the agreement met the threshold for being a "modern award" under the Fair Work Act 2009 and whether it provided for fair and reasonable terms of employment. The SDA argued that the agreement failed to meet these standards, particularly in terms of minimum wages, penalty rates, and conditions for shift work. The court had to determine if the agreement was an appropriate and compliant modern award, considering the statutory requirements and the principles of fairness and reasonableness.

The Fair Work Commission found that the Monford Group Employee Agreement 2019 was a modern award that met the statutory requirements and provided fair and reasonable terms for the employees. The court held that the agreement appropriately addressed minimum wage rates, penalty rates, and conditions for shift work, and was consistent with the overarching objectives of the Fair Work Act. Consequently, the application for approval was granted, and the agreement was approved as a modern award.

Monford Group 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