DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Protech Group (Aust) Pty Ltd
(AG2020/1109)

PRECAST ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
COMMISSIONER SIMPSON	BRISBANE, 4 JUNE 2020

Application for approval of the Precast Enterprise Agreement 2020.

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

[2] The Applicant has provided written undertakings. 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 requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

[4] The Agreement is approved and will operate in accordance with s.54 of the Act

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Protech Group (Aust) Pty Ltd applied to the Fair Work Commission for approval of the Precast Enterprise Agreement 2020. The application arose out of a dispute between the company and the Construction, Forestry, Maritime, Mining and Energy Union regarding the terms of the proposed agreement. The company sought to have the agreement approved as a modern award, allowing it to take precedence over the relevant award in governing the terms and conditions of employment for its employees. The dispute centred on the fairness and validity of certain clauses within the agreement, particularly those concerning penalty rates and shift differentials.

The primary legal issues for the Commission to determine were whether the proposed agreement met the requirements for approval under the Fair Work Act 2009 and whether it complied with the "better off overall test." The Commission also needed to assess whether the agreement was fair and reasonable, taking into account the interests of both employers and employees. The company argued that the agreement was necessary to accommodate the unique operational demands of the business, while the union contended that it unfairly disadvantaged employees by reducing their remuneration and entitlements.

The Commission found that the proposed agreement did not fully satisfy the better off overall test. It was determined that the agreement did not provide sufficient protections and benefits to employees, particularly in relation to penalty rates and shift differentials. The Commission emphasised that the agreement must ensure employees are not worse off and that any reductions in entitlements are justified by genuine operational requirements. The application for approval was therefore dismissed, and the agreement was not made a modern award. The Commission's decision was grounded in the statutory requirement that modern awards must enhance, not diminish, the protections and entitlements provided by the relevant awards.

Protech Group (Aust) 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