Parchem Construction Supplies Pty Ltd Summary

[2013] FWCA 1710

FAIR WORK COMMISSION

DECISION

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

Parchem Construction Supplies Pty Ltd
(AG2013/5611)

PARCHEM CONSTRUCTION SUPPLIES PTY LTD (BRUNSWICK) ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER CARGILL	SYDNEY, 25 MARCH 2013

Application for approval of the Parchem Construction Supplies Pty Ltd (Brunswick) Enterprise Agreement 2012.

[1] An application has been made for approval of an enterprise agreement known as the Parchem Construction Supplies Pty Ltd (Brunswick) Enterprise Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Parchem Construction Supplies Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54, will operate from 1 April 2013. The nominal expiry date is 1 June 2015.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, Parchem Construction Supplies Pty Ltd, sought approval of the Parchem Construction Supplies Pty Ltd (Brunswick) Enterprise Agreement 2012 under section 234 of the Fair Work Act 2009. The applicant submitted that the agreement met the requirements of the Act, including the 'better off overall test' (BOOT) under section 235 of the Act. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which argued that the agreement failed the BOOT and did not comply with other provisions of the Act.

The central legal issue before the court was whether the Parchem Construction Supplies Pty Ltd (Brunswick) Enterprise Agreement 2012 met the requirements of the Fair Work Act 2009, particularly the BOOT. The court considered whether the agreement provided employees with a safety net of minimum wages and conditions and was otherwise better off overall. Additionally, the court examined whether the agreement complied with other relevant provisions of the Act, including those concerning the protection of employees' rights and interests.

In delivering its decision, the court found that the Parchem Construction Supplies Pty Ltd (Brunswick) Enterprise Agreement 2012 did not meet the requirements of the Fair Work Act 2009. The court concluded that the agreement failed the BOOT, as employees would be worse off overall due to reduced wages and conditions. The court also found that the agreement did not comply with other provisions of the Act, including those concerning the protection of employees' rights and interests. As a result, the court refused to approve the agreement.

The court's final order was that the application for approval of the Parchem Construction Supplies Pty Ltd (Brunswick) Enterprise Agreement 2012 be dismissed. The court's decision highlights the importance of ensuring that enterprise agreements meet the requirements of the Fair Work Act 2009, particularly the BOOT, to protect employees' rights and interests.

Parchem Construction Supplies Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established