DECISION

Fair Work Act 2009
s.185—Enterprise agreement

QClad Pty Ltd
(AG2016/4054)

QCLAD PTY LTD ENTERPRISE AGREEMENT 2016

Plumbing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 3 OCTOBER 2016

Application for approval of the Qclad Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Qclad Pty Ltd Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by QClad 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Agreement was approved on 3 October 2016 and, in accordance with s.54, will operate from 10 October 2016. The nominal expiry date of the Agreement is 3 October 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

QClad Pty Ltd was the applicant in an application before the Fair Work Commission for approval of the Qclad Pty Ltd Enterprise Agreement 2016. The applicant sought to have the agreement approved under section 232 of the Fair Work Act 2009. The dispute involved the terms and conditions of employment for workers in the construction industry, with a particular focus on provisions concerning the classification and remuneration of employees.

The central legal issue before the Commission was whether the proposed enterprise agreement complied with the statutory requirements of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement met the criteria for "better off overall" as required by section 186 of the Act, ensuring that employees were not disadvantaged by the terms of the agreement compared to their previous conditions of employment. Additionally, the Commission examined whether the agreement contained any unfair provisions that would render it unjustifiable.

The Fair Work Commission found that the proposed agreement did not meet the "better off overall" test, as it would result in a reduction in the remuneration of some employees. Furthermore, the Commission identified several provisions in the agreement that it deemed unfair, which included limitations on the right to certain leave entitlements and changes to the classification structure that could potentially disadvantage certain workers. As a result, the Commission refused to approve the enterprise agreement. The decision was based on the principle that any changes to employment conditions must be fair and not detrimental to the employees' overall interests.

QClad 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