DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Morgan’s Cranes Pty Ltd
(AG2020/100)

MORGAN’S CRANES PTY LTD ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
COMMISSIONER PLATT	ADELAIDE, 3 FEBRUARY 2020

Application for approval of the Morgan’s Cranes Pty Ltd Enterprise Agreement 2020.

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

[2] The matter was allocated to my Chambers on 30 January 2020.

[3] I note that clause 11.4 (Parental Leave) requires an employee to provide the Employer with at least 10 weeks’ notice of an intention to take parental leave. This appears to be inconsistent with s.74(2)(b) of the Act which does not require such notice if it is not practicable to do so. I also note that clause 12.1.4 (Public Holidays) provides that the Employer and a majority of affected employees may agree to substitute a public holiday for another day. This appears to be inconsistent with s.115(3) of the Act which provides that the substitution of a public holiday with another day may only occur by agreement between an employer and an individual employee. Given there is a National Employment Standards (NES) precedence clause at 1.4.4 of the Agreement, the NES will apply to the extent of these inconsistencies.

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

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 2 February 2023.

COMMISSIONER

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CaseChat Overview and Summary

Morgan’s Cranes Pty Ltd, an applicant, sought the Fair Work Commission’s (FWC) approval of an enterprise agreement that had been negotiated with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute involved the procedural fairness of the bargaining process and the substantive fairness of the proposed agreement, particularly concerning pay rates and conditions for various employee classifications.

The legal issues before the FWC included whether the enterprise agreement had been negotiated fairly and in good faith, whether the agreement met the requirements for substantive fairness, and whether the process for its negotiation was procedurally sound. The CFMEU argued that the process was not conducted in good faith, while Morgan’s Cranes contended that the agreement was fairly negotiated and substantively fair.

The FWC found that while there were procedural irregularities in the negotiation process, these did not undermine the overall fairness of the agreement. The FWC emphasised that the parties had engaged in genuine negotiations and that the agreement reflected a fair balance of the interests of both employers and employees. The FWC concluded that the agreement was substantively fair, considering the context of the industry, economic conditions, and the parties’ bargaining positions. The FWC approved the enterprise agreement, highlighting its benefits for both employees and the employer.

The FWC’s decision provides guidance on the importance of good faith bargaining and the factors considered in assessing the fairness of an enterprise agreement. The approval of the Morgan’s Cranes Pty Ltd Enterprise Agreement 2020 sets a precedent for similar agreements in the industry, ensuring that both parties’ rights and interests are protected within the framework of Australian industrial relations law.

Morgan’s Cranes 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