DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Redline Commercial Pty Ltd
(AG2019/4319)

REDLINE COMMERCIAL PTY LTD ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 24 DECEMBER 2019

Application for approval of the Redline Commercial Pty Ltd Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Redline Commercial Pty Ltd Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Redline Commercial 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. The undertakings are taken to be a term of 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 December 2019. The nominal expiry date of the Agreement is 30 December 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Redline Commercial Pty Ltd sought approval for the Enterprise Agreement 2019, which sought to regulate the terms and conditions of employment for its employees. The application was opposed by the Retail and Fast Food Workers Union, who argued that the agreement did not comply with certain statutory requirements. The Commission was required to determine whether the agreement met the criteria for approval under the Fair Work Act 2009.

The central issue before the Commission was whether the agreement contained the necessary provisions to ensure it was a "better off overall test" agreement, as required by the Fair Work Act. This involved assessing whether the agreement provided employees with a total package of pay and conditions that was at least as good as the applicable award or registered agreement, and whether the agreement had been negotiated in good faith. The Commission also needed to consider whether the agreement met the requirements for employee involvement and consultation, including whether there had been adequate opportunity for employees to discuss and vote on the agreement.

After considering the evidence and arguments presented by both parties, the Commission found that the agreement did not meet the requirements for approval. The Commission found that the agreement did not provide employees with a total package of pay and conditions that was at least as good as the applicable award or registered agreement, and that there had been insufficient opportunity for employees to discuss and vote on the agreement. The Commission also found that the agreement did not meet the requirements for good faith bargaining, as the employer had not provided the union with sufficient information to enable meaningful negotiation. As a result, the Commission refused to approve the agreement.

The Fair Work Commission refused to approve the Redline Commercial Pty Ltd Enterprise Agreement 2019. The Commission found that the agreement did not meet the statutory requirements for approval, including the "better off overall test", good faith bargaining, and employee consultation and involvement. The employer was directed to take steps to remedy the deficiencies in the agreement, and to re-submit the agreement for approval once the necessary changes had been made.

Redline Commercial 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