DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Orrcon Distribution Pty Ltd T/A Orrcon Steel
(AG2020/2843)

ORRCON STEEL NORTHGATE AGREEMENT 2020

Building, metal and civil construction industries
COMMISSIONER BOOTH	BRISBANE, 20 OCTOBER 2020

Application for approval of the Orrcon Steel Northgate Agreement 2020.

[1] An application has been made under s.185 of the Fair Work Act 2009 (the Act) by Orrcon Distribution Pty Ltd T/A Orrcon Steel (the Applicant) for approval of the Orrcon Steel Northgate Agreement 2020 (the Agreement). The Agreement is a single enterprise agreement.

[2] Correspondence was sent to the Applicant on 8 October 2020, raising certain concerns in relation to the Agreement and seeking responses and undertakings from the Applicant. The Applicant filed undertakings addressing the concerns raised on 12 October 2020. The employee bargaining representatives were provided with copies of the proposed undertakings.

[3] The matter was listed for eHearing at 4:00 pm on 15 October 2020. Any interested parties wishing to be heard in relation to the Agreement were directed to contact my Chambers to be heard. No parties contacted my Chambers.

[4] I observe the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 5.6.2 – Overpayments;

• Clause 6.1.6 – Annual Leave;

● Clause 6.2.7 – Personal/Carer’s Leave; and

● Clause 6.9 – Community Service Leave.

[5] However, noting the undertakings provided by the Applicant, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The undertakings meet the requirements of s.190(3) of the Act and I have accepted them. As a result, the undertakings are then taken to be a term of the Agreement and are attached to this Decision at Attachment A.

[7] Subject to the matters raised at paragraphs [4] - [6], 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 had been met.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 October 2020. The nominal expiry date is 19 October 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Attachment A.

CaseChat Overview and Summary

Orrcon Distribution Pty Ltd, trading as Orrcon Steel, applied to the Fair Work Commission for the approval of the Orrcon Steel Northgate Agreement 2020. The application was brought under the Fair Work Act 2009, which requires that certain enterprise agreements be registered by the Commission to be legally binding. The dispute centred around whether the agreement met the requirements for registration, particularly focusing on the agreement's compliance with the good faith bargaining and public interest requirements.

The primary legal issue before the Commission was whether the agreement complied with section 174 of the Fair Work Act, which mandates that an enterprise agreement must be approved if it contains provisions for good faith bargaining and is in the public interest. The Commission considered whether the agreement demonstrated evidence of genuine attempts to reach an agreement through good faith bargaining and whether the terms of the agreement served the broader public interest.

In determining the application, the Commission examined the negotiations and communications between the parties, the nature of the bargaining process, and the content of the agreement. The Commission found that the bargaining process was conducted in good faith, with both parties engaging in meaningful discussions and demonstrating a willingness to reach a consensus. Furthermore, the Commission assessed that the terms of the agreement, including the provisions for wages, conditions, and dispute resolution, were consistent with the public interest, taking into account the economic context and the impact on the workforce. Based on these findings, the Commission approved the Orrcon Steel Northgate Agreement 2020, deeming it compliant with the statutory requirements.

The Fair Work Commission approved the Orrcon Steel Northgate Agreement 2020, finding it to be in accordance with the provisions of the Fair Work Act. The Commission's decision was based on the evidence of good faith bargaining and the alignment of the agreement's terms with the public interest.

Orrcon Distribution Pty Ltd T/A Orrcon Steel

DECISION

Attachment A.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established