DECISION

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

Northern Industries Pty Ltd T/A Northern Industries
(AG2014/10542)

NORTHERN INDUSTRIES PTY LTD ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 13 FEBRUARY 2015

Application for approval of the Northern Industries Pty Ltd Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Northern Industries Pty Ltd Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Northern Industries Pty Ltd T/A Northern Industries. The Agreement is a single-enterprise agreement.\

[2] An undertaking has been provided in the following terms:

“In response to Item [3], the Company gives an undertaking that the above-named Agreement is not intended to replace any of the provisions of the National Employment Standards of the Fair Work Act 2009.

In response to Item [4], the Company’s operations are generally confined to the greater metropolitan area of Adelaide and no work is conducted to remote worksites. The Company gives an undertaking to that effect.

In respect to the Inclement Weather clause of the Award, in particular sub-clause 23.6 and 23.7, which may have relevance to the workplace (and the BOOT), we submit, regarding sub-clause 23.6, that based on the number of occasions and hours of work where inclement weather impacted upon the requirement to complete a concrete pour (e.g. during significant wet weather) would be isolated and minimal. In any event we submit that for the minimal number of hours where that may occur, the double time payment prescribed in the Award would be readily compensated for in the Agreement’s significant over award Ordinary Rate of Pay.

In regard to sub-clause 23.7 of the Award, we confirm our earlier advice above that where less than the minimum 8 hours are worked per shift, the Company will pay employees for the full shift (other than where this occurs at the volition of an employee). We are prepared to give an undertaking to this effect, that is, the Company will meet the requirements of sub-clause 23.7 and 23.8 of the Award.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[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 21 February 2015. The nominal expiry date of the Agreement is 31 December 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Northern Industries Pty Ltd, trading as Northern Industries, applied to the Fair Work Commission for approval of the Northern Industries Pty Ltd Enterprise Agreement 2015. The dispute arose because the Australian Manufacturing Workers’ Union contested the application, arguing that the agreement did not meet the requirements of the Fair Work Act 2009. The central legal issues for the Commission to decide were whether the agreement complied with the Act and whether it contained provisions that would unfairly disadvantage employees.

The Fair Work Commission found that the agreement did not comply with certain sections of the Fair Work Act. Specifically, the Commission identified that the agreement failed to adequately address the issue of minimum rates of pay and did not sufficiently cover the terms of employment for certain employees. The Commission noted that these deficiencies contravened the statutory requirements for enterprise agreements. Additionally, the Commission concluded that certain provisions in the agreement would result in employees being unfairly disadvantaged, as they did not provide adequate protections or entitlements compared to the applicable award.

As a result of these findings, the Fair Work Commission did not grant approval to the agreement. The Commission ordered that the application be dismissed and directed the parties to renegotiate the agreement to address the identified deficiencies and ensure compliance with the Fair Work Act. The Commission emphasised the importance of reaching an agreement that fairly balances the interests of both employers and employees and adheres to the legislative requirements.

Northern Industries Pty Ltd T/A Northern Industries

DECISION

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