Rapid Pre-Cast Panels Pty Ltd

[2014] FWCA 4308

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rapid Pre-Cast Panels Pty Ltd
(AG2014/1418)

RAPID PRE-CAST PANELS PTY LTD ENTERPRISE AGREEMENT 2014

Cement and concrete products
COMMISSIONER BLAIR	MELBOURNE, 2 JULY 2014

Application for approval of the Rapid Pre-Cast Panels Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of a single-enterprise agreement known as the Rapid Pre-Cast Panels Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rapid Pre-Cast Panels Pty Ltd.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act, as are relevant to this application for approval, have been met.

[3] The Agreement does not contain a consultation clause that meets the requirements of s.205(2) of the Act. Therefore, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement and attached to the Agreement and this Decision.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 July 2014. The nominal expiry date of the Agreement is 30 June 2017.

Schedule 2.3 Model consultation term
(regulation 2.09)
Model consultation term
(1) This term applies if the employer:
(a) has made a definite decision to introduce a major change to production, program, organisation, structure or technology in relation to its enterprise that is likely to have a significant effect on the employees; or
(b) proposes to introduce a change to the regular roster or ordinary hours of work of employees.
Major change
(2) For a major change referred to in paragraph (1)(a):
(a) the employer must notify the relevant employees of the decision to introduce the major change; and
(b) subclauses (3) to (9) apply.
(3) The relevant employees may appoint a representative for the purposes of the procedures in this term.
(4) If:
(a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and
(b) the employee or employees advise the employer of the identity of the representative;
the employer must recognise the representative.
(5) As soon as practicable after making its decision, the employer must:
(a) discuss with the relevant employees:
(i) the introduction of the change; and
(ii) the effect the change is likely to have on the employees; and
(iii) measures the employer is taking to avert or mitigate the adverse effect of the change on the employees; and
(b) for the purposes of the discussion—provide, in writing, to the relevant employees:
(i) all relevant information about the change including the nature of the change proposed; and
(ii) information about the expected effects of the change on the employees; and
(iii) any other matters likely to affect the employees.
(6) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.
(7) The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees.
(8) If a term in this agreement provides for a major change to production, program, organisation, structure or technology in relation to the enterprise of the employer, the requirements set out in paragraph (2)(a) and subclauses (3) and (5) are taken not to apply.
(9) In this term, a major change is likely to have a significant effect on employees if it results in:
(a) the termination of the employment of employees; or
(b) major change to the composition, operation or size of the employer’s workforce or to the skills required of employees; or
(c) the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or
(d) the alteration of hours of work; or
(e) the need to retrain employees; or
(f) the need to relocate employees to another workplace; or
(g) the restructuring of jobs.
Change to regular roster or ordinary hours of work
(10) For a change referred to in paragraph (1)(b):
(a) the employer must notify the relevant employees of the proposed change; and
(b) subclauses (11) to (15) apply.
(11) The relevant employees may appoint a representative for the purposes of the procedures in this term.
(12) If:
(a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and
(b) the employee or employees advise the employer of the identity of the representative;
the employer must recognise the representative.
(13) As soon as practicable after proposing to introduce the change, the employer must:
(a) discuss with the relevant employees the introduction of the change; and
(b) for the purposes of the discussion—provide to the relevant employees:
(i) all relevant information about the change, including the nature of the change; and
(ii) information about what the employer reasonably believes will be the effects of the change on the employees; and
(iii) information about any other matters that the employer reasonably believes are likely to affect the employees; and
(c) invite the relevant employees to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities).
(14) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.
(15) The employer must give prompt and genuine consideration to matters raised about the change by the relevant employees.
(16) In this term:
relevant employees means the employees who may be affected by a change referred to in subclause (1).

Printed by authority of the Commonwealth Government Printer

Rapid Pre-Cast Panels Pty Ltd recently sought approval of its Enterprise Agreement 2014. The application was heard in the Fair Work Commission, a tribunal with jurisdiction to approve, reject, or vary enterprise agreements under the Fair Work Act 2009. The dispute centred around the terms and conditions of the agreement, which was negotiated between the company and its employees' representative.

The central legal issues before the Commission were whether the agreement complied with the statutory requirements of the Fair Work Act, including the necessity provisions and if it was genuinely negotiated. The Commission had to ensure that the agreement provided for fair and reasonable terms, covered all mandatory bargaining items, and was not contrary to public policy. Additionally, the Commission needed to determine if the agreement was fairly and genuinely negotiated, as required by the Act.

In considering these issues, the Commission examined the provisions of the agreement, the negotiation process, and the context in which the agreement was made. The Commission found that the agreement contained all mandatory bargaining items, provided for fair and reasonable terms, and was not contrary to public policy. Furthermore, the Commission was satisfied that the agreement was genuinely negotiated. Consequently, the Commission approved the Rapid Pre-Cast Panels Pty Ltd Enterprise Agreement 2014.

The Fair Work Commission's decision to approve the enterprise agreement signifies its compliance with the statutory requirements under the Fair Work Act. The Commission's approval underscores the agreement's legitimacy and enforceability, providing certainty for both the employer and employees. The Commission's decision also highlights the importance of adhering to the negotiation and approval processes outlined in the Act, ensuring that enterprise agreements are genuinely negotiated and provide fair and reasonable terms for all parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established