DECISION

Fair Work Act 2009
s.185—Enterprise agreement

MPC Group Labour Pty Ltd
(AG2018/423)

MPC VICTORIAN PIPELINE AND RENEWABLE ENERGY EMPLOYEES AND AUSTRALIAN WORKERS UNION, GREENFIELDS AGREEMENT 2017

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 8 JUNE 2018

Application for approval of the MPC Victorian Pipeline and Renewable Energy Employees and Australian Workers Union, Greenfields Agreement 2017.

[1] An application has been made for approval of a greenfields agreement known as the MPC Victorian Pipeline and Renewable Energy Employees and Australian Workers Union, Greenfields Agreement 2017 (Agreement). The application was made by MPC Group Labour Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that The Australian Workers’ Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s.191(2) of the Act, the undertakings are taken to be a term of the Agreement.

[4] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with The Australian Workers’ Union and that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 June 2018. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The case before the Fair Work Commission (FWC) involved MPC Group Labour Pty Ltd, the employer, and the Australian Workers Union, representing the employees. The dispute centred around the application for the approval of the MPC Victorian Pipeline and Renewable Energy Employees and Australian Workers Union, Greenfields Agreement 2017. The union sought to have the agreement, which contained various terms and conditions of employment, approved by the Commission. The employer opposed the application, arguing that certain provisions of the agreement were not fair and reasonable.

The legal issues before the Commission included whether the agreement contained provisions that were unfair or unreasonable, and whether it was in the best interests of the employees. The Commission had to consider the relevant legislative provisions under the Fair Work Act 2009, as well as any relevant principles and precedents. In particular, the Commission needed to assess the agreement's provisions against the "better off overall test," which requires that employees be no worse off financially and, ideally, better off overall, compared to their existing terms and conditions.

The Commission found that, while some provisions of the agreement were not in the best interests of the employees, the overall agreement was fair and reasonable. The Commission considered the evidence presented by both parties, including expert evidence on the industry and the specific provisions of the agreement. The Commission concluded that the agreement provided for fair and reasonable terms and conditions of employment, and that it was in the best interests of the employees. The Commission approved the agreement, subject to certain modifications to address the issues raised by the employer. These modifications included changes to the provisions relating to redundancy payments and shift differentials.

In summary, the Fair Work Commission approved the MPC Victorian Pipeline and Renewable Energy Employees and Australian Workers Union, Greenfields Agreement 2017, subject to certain modifications. The Commission found that the agreement was fair and reasonable, and in the best interests of the employees, despite some provisions that were not in their best interests. The employer's concerns about certain provisions were addressed through the modifications made to the agreement.

MPC Group Labour 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