Rec Maintenance & Construction Pty Ltd T/A Rec Maintenance & Construction Pty Ltd Summary

[2024] FWCA 4329

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Rec Maintenance & Construction Pty Ltd T/A Rec Maintenance & Construction Pty Ltd

(AG2024/4405)

REC MINERALS MAINTENANCE DIVISION ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT O’KEEFFE	PERTH, 6 DECEMBER 2024

Application for approval of the REC Minerals Maintenance Division Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the REC Minerals Maintenance Division Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rec Maintenance & Construction Pty Ltd T/A Rec Maintenance & Construction Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 19 July 2024 and the Agreement was made on 26 October 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.
The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT.
As the Agreement did not contain a delegates’ rights clause, as per s.205A of the Act the delegates’ rights clause from the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.
The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 December 2024. The nominal expiry date of the Agreement is 6 December 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case were Rec Maintenance & Construction Pty Ltd, trading as Rec Maintenance & Construction Pty Ltd, and the Fair Work Commission. The nature of the dispute was an application for the approval of the REC Minerals Maintenance Division Enterprise Agreement 2024. The matter was heard in the Fair Work Commission, which has jurisdiction to approve enterprise agreements under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement complied with the requirements of the Fair Work Act, particularly whether it contained all the mandated provisions, and whether the agreement was genuinely negotiated. The Commission also considered whether the agreement would have a detrimental effect on employees and whether it was made in good faith. A further issue was whether the agreement met the requirements of the "better off overall test" to ensure employees were not worse off under the new agreement.

In reaching its decision, the Fair Work Commission found that the agreement met all the legal requirements under the Fair Work Act. The Commission was satisfied that all mandated provisions were included and that the agreement had been genuinely negotiated. The Commission determined that the agreement would not have a detrimental effect on employees and was made in good faith. The Commission concluded that the agreement satisfied the "better off overall test," as employees would not be worse off under the new agreement. Based on these findings, the Commission approved the REC Minerals Maintenance Division Enterprise Agreement 2024.

The final orders of the Commission were that the REC Minerals Maintenance Division Enterprise Agreement 2024 be approved and registered under the Fair Work Act. The agreement was to take effect from the date of the Commission's decision and would apply to all employees covered by the agreement. The approval of the enterprise agreement ensures that the terms and conditions of employment for the relevant employees are governed by the agreed-upon terms, providing certainty and stability for both the employer and the employees.

Rec Maintenance & Construction Pty Ltd T/A Rec Maintenance & Construction Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established