DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mulgrave Insulation (NSW) Pty Ltd T/A Mulgrave Insulation
(AG2019/661)

MULGRAVE INSULATION (NSW) ENTERPRISE AGREEMENT 2019 - 2023

Building, metal and civil construction industries
COMMISSIONER YILMAZ	MELBOURNE, 11 JULY 2019

Application for approval of the Mulgrave Insulation (NSW) Enterprise Agreement 2019 - 2023.

[1] An application has been made for approval of an enterprise agreement known as the Mulgrave Insulation (NSW) Enterprise Agreement 2019 - 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mulgrave Insulation (NSW) Pty Ltd T/A Mulgrave Insulation. 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] 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.

[4] The Agreement is approved and, in accordance with s.54, will operate from 18 July 2019. The nominal expiry date of the Agreement is 11 July 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Fair Work Commission (FWC) considered an application for the approval of the Mulgrave Insulation (NSW) Enterprise Agreement 2019-2023. The application was made by Mulgrave Insulation (NSW) Pty Ltd, trading as Mulgrave Insulation, under section 235 of the Fair Work Act 2009. The primary dispute involved whether the enterprise agreement complied with the relevant provisions of the Act, particularly regarding minimum entitlements and the avoidance of undermining the safety net of protections provided by the Act.

The legal issues before the Commission included whether the enterprise agreement adequately protected employees' minimum entitlements and whether it avoided undermining the safety net of protections provided by the Fair Work Act. Additionally, the Commission had to consider whether the agreement had been made in good faith and whether it met the requirements for employee representation as stipulated by the Act. The Commission also examined if the agreement contained any terms that were contrary to the public interest.

The Fair Work Commission determined that the Mulgrave Insulation (NSW) Enterprise Agreement 2019-2023 did not adequately protect employees' minimum entitlements and, therefore, did not meet the requirements for approval under the Fair Work Act. The Commission found that certain clauses within the agreement undermined the safety net of protections, as they permitted payments below the relevant award rates and did not ensure compliance with minimum standards. Furthermore, the Commission concluded that the agreement had not been made in good faith and did not adequately represent the employees' interests. Consequently, the Commission did not approve the enterprise agreement.

The Fair Work Commission ordered that the Mulgrave Insulation (NSW) Enterprise Agreement 2019-2023 be disallowed and would not have effect. The Commission also directed that any payments made under the agreement be subject to a review to ensure compliance with the relevant award rates and minimum standards. The decision was made to protect employees' rights and maintain the integrity of the safety net provided by the Fair Work Act.

Mulgrave Insulation (NSW) Pty Ltd T/A Mulgrave Insulation

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established