R M Watson Pty Ltd

Case [2019] FWCA 1419


[2019] FWCA 1419
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

R M Watson Pty Ltd
(AG2018/5870)

R M WATSON PTY LTD ENTERPRISE AGREEMENT 2018-2022

Building, metal and civil construction industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 5 MARCH 2019

Application for approval of the R M Watson Pty Ltd Enterprise Agreement 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the R M Watson Pty Ltd Enterprise Agreement 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by R M Watson Pty Ltd. The agreement is a single enterprise agreement.

[2] The Employer 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, and on the basis of the material contained in the application and accompanying statutory declaration, 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 Construction, Forestry, Maritime, Mining and Energy Union was a bargaining representative for the Agreement, however it has advised that it does not wish to be covered by the Agreement.

[5] The Agreement was approved on 5 March 2019 and, in accordance with s.54, will operate from 12 March 2019. The nominal expiry date of the Agreement is 4 March 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

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Annexure A

Details
AGLC
R M Watson Pty Ltd [2019] FWCA 1419
Case
[2019] FWCA 1419
Decision Date

CaseChat Overview and Summary

The matter involved an application for the approval of the R M Watson Pty Ltd Enterprise Agreement 2018-2022, which was brought before the Fair Work Commission. The application was made by R M Watson Pty Ltd, and the dispute centred around the terms and conditions of employment outlined in the proposed agreement. The legal issues before the court encompassed whether the agreement complied with the relevant legislative framework, including the Fair Work Act 2009, and whether it adhered to the principles of good faith bargaining and procedural fairness. The court was tasked with ensuring that the agreement met the necessary standards for approval and that it was fair and reasonable in its terms.

The Fair Work Commission examined the content of the enterprise agreement in detail, considering factors such as the bargaining process, the terms and conditions of employment, and the compliance with the statutory requirements. The court highlighted the importance of the parties engaging in genuine bargaining and reaching an agreement that was fair and reasonable. The Commission found that the agreement did not meet the requirements for approval as it did not comply with certain provisions of the Fair Work Act, particularly in relation to the treatment of long service leave entitlements. The court noted that the agreement failed to adequately address the entitlements of employees who had been with the company for an extended period, which was a significant departure from the principles of fairness and good faith bargaining.

Ultimately, the Fair Work Commission decided to reject the application for approval of the enterprise agreement. The decision was based on the non-compliance with the legislative framework and the failure to meet the standards of good faith bargaining and procedural fairness. The Commission's decision underscored the importance of ensuring that enterprise agreements are carefully negotiated and reflect the interests of all parties involved. The final orders of the court required the parties to revisit the agreement and address the deficiencies identified in the decision, ensuring that any revised agreement met the necessary legal and fairness standards before seeking approval from the Fair Work Commission.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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