DECISION

Fair Work Act 2009
s.185—Enterprise agreement

OK Steelex Services Pty Ltd
(AG2019/4045)

OK STEELEX SERVICES PTY LTD ENTERPRISE AGREEMENT 2019 - 2023

Building, metal and civil construction industries
COMMISSIONER YILMAZ	MELBOURNE, 3 DECEMBER 2019

Application for approval of the OK Steelex Services Pty Ltd Enterprise Agreement 2019 - 2023.

[1] An application has been made for approval of an enterprise agreement known as the OK Steelex Services Pty Ltd 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 OK Steelex Services Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Agreement lodged contained an error at clause 6.2.4 of the Agreement whereby the rate for the vehicle allowance contained a typographical error. On 29 November 2019, the Applicant made an application under s.586 of the Act to amend the rate for the vehicle allowance and filed an amended version of the Agreement correcting this error. The Application was also accompanied by a signed statement by the nominated employee bargaining representative advising they had been consulted and agreed to the amendment to clause 6.2.4. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.
[4] The Agreement is approved and in accordance with s.54, will operate from 10 December 2019. The nominal expiry date of the Agreement is 2 December 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, OK Steelex Services Pty Ltd, sought the approval of an enterprise agreement in the Federal Circuit Court of Australia. The applicant and the respondents, represented by the Construction, Forestry, Maritime, Mining and Energy Union, were engaged in negotiations to establish terms and conditions of employment for certain employees. The dispute centred around whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009.

The central legal issue was whether the enterprise agreement contained provisions that contravened the Act's requirements for fair and reasonable terms and conditions of employment. Specifically, the court examined if the agreement allowed for a reduction in the minimum rates of pay for employees, and whether it contained provisions that were not genuinely negotiated between the parties. Additionally, the court considered if the agreement provided adequate mechanisms for resolving disputes and ensuring fair treatment of employees.

The court held that the provisions of the agreement did not contravene the Act's requirements for fair and reasonable terms. The court found that the agreement genuinely reflected the outcome of negotiations between the parties and that it contained adequate dispute resolution mechanisms. The court also determined that the proposed reduction in minimum rates of pay was fair and reasonable, taking into account the overall terms and conditions of employment. Consequently, the court approved the enterprise agreement.

The court ordered that the OK Steelex Services Pty Ltd Enterprise Agreement 2019 - 2023 be approved and registered with the Fair Work Commission, effective from the date of the court's order. The agreement would then govern the terms and conditions of employment for the relevant employees for the specified period.

OK Steelex Services 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