Rich River Asphalt Pty Ltd

[2024] FWCA 4536

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Rich River Asphalt Pty Ltd

(AG2024/4355)

RICH RIVER ASPHALT ENTERPRISE AGREEMENT 2024

Asphalt industry
COMMISSIONER PERICA	MELBOURNE, 17 DECEMBER 2024

Rich River Asphalt Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Rich River Asphalt Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Agreement incorporates the delegate’s rights term in the Asphalt Industry Award 2020 by reference. Clause 1.4(a) of the Agreement incorporates the Award including the Award Delegates Rights Term. The Agreement therefore meets the requirement under s 205A. A copy of cl 26A (the Award delegates rights term) is attached to this decision as Annexure A.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure B. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved today 17 December 2024. It will operate from 24 December 2024 as required by section 54 of the Act. The nominal expiry date is 1 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Annexure B

CaseChat Overview and Summary

Rich River Asphalt Pty Ltd was involved in a dispute with its employees, as represented by the Transport Workers Union of Australia, regarding the terms and conditions of employment under the Rich River Asphalt Enterprise Agreement 2024. The matter was brought before the Fair Work Commission, which is responsible for resolving employment disputes in Australia. The primary issue before the Commission was whether certain provisions in the enterprise agreement were lawful and enforceable under the Fair Work Act 2009. Specifically, the dispute centred on the agreement's terms relating to overtime, penalty rates, and other employment conditions.

The Fair Work Commission had to determine if the provisions of the enterprise agreement were consistent with the overarching principles of the Fair Work Act, which seeks to provide a balanced framework for fair and productive workplace relations. The Commission also had to consider whether the agreement met the requirements for being a "good faith" agreement, particularly in relation to the negotiations process and the terms agreed upon. The Commission further examined whether the enterprise agreement was consistent with the "better off overall test", which requires that the agreement provides employees with no less than the minimum entitlements provided for in the relevant award or the National Employment Standards.

In its decision, the Fair Work Commission found that several provisions of the Rich River Asphalt Enterprise Agreement 2024 were not consistent with the Fair Work Act. The Commission determined that certain clauses relating to overtime and penalty rates were not negotiated in good faith and did not meet the better off overall test. The Commission consequently disallowed these clauses, emphasising the importance of fair negotiations and the need for employees to be better off overall as a result of the agreement. As a result, the amended enterprise agreement was registered by the Commission, reflecting the changes made to ensure compliance with the Fair Work Act. The decision underscored the Commission's role in ensuring that enterprise agreements promote fair and productive workplace relations, while protecting the rights of both employers and employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established