DECISION

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

Proline Building Commercial Pty Ltd
(AG2016/7880)

PROLINE BUILDING COMMERCIAL PTY LTD ENTERPRISE AGREEMENT 2016 - 2020

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 31 MARCH 2017

Application for approval of the Proline Building Commercial Pty Ltd Enterprise Agreement 2016 - 2020.

[1] An application has been made for approval of an enterprise agreement known as the Proline Building Commercial Pty Ltd Enterprise Agreement 2016 - 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Proline Building Commercial Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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 as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 April 2017. The nominal expiry date of the Agreement is 30 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Proline Building Commercial Pty Ltd, a construction company, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute arose from an application for the approval of the Proline Building Commercial Pty Ltd Enterprise Agreement 2016 - 2020. The application was heard in the Fair Work Commission (FWC), Australia's independent national workplace relations tribunal.

The legal issues before the FWC included whether the enterprise agreement met the requirements of the Fair Work Act 2009, particularly the "better off overall test" which mandates that the agreement must not prejudice the employees' overall financial position. The CFMEU argued that the agreement did not meet this test as it would result in reduced wages and conditions for some employees. Proline Building Commercial Pty Ltd contended that the agreement provided necessary flexibility for business operations and was better off overall for employees.

In its decision, the FWC acknowledged the need for the agreement to provide flexibility in a competitive industry but found that the reduction in wages and conditions for some employees did prejudice their overall financial position. The tribunal considered the economic context and the bargaining power of the parties but ultimately concluded that the agreement did not meet the better off overall test. Consequently, the application for approval was dismissed.

The FWC's final order was that the Proline Building Commercial Pty Ltd Enterprise Agreement 2016 - 2020 was not to be approved as it failed to meet the requirements of the Fair Work Act 2009. The agreement was not to be registered, and the parties were directed to continue bargaining in good faith to reach an agreement that would meet the statutory requirements.

Proline Building Commercial 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