Riverina Earthworks Pty Ltd T/A Riverina Earthworks

[2014] FWCA 8515

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Riverina Earthworks Pty Ltd T/A Riverina Earthworks
(AG2014/7512)

RIVERINA EARTHWORKS PTY LTD ENTERPRISE AGREEMEMT 2014 - 2017

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 28 NOVEMBER 2014

Application for approval of the Riverina Earthworks Pty Ltd Enterprise Agreement 2014 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the Riverina Earthworks Pty Ltd Enterprise Agreement 2014 - 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Riverina Earthworks Pty Ltd trading as Riverina Earthworks (the Applicant). The Agreement is a single-enterprise agreement.

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

[3] Fair Work Commission received correspondence dated 14 October 2014, which included Undertakings related to the Superannuation provision at clause 19.10 of the Agreement, made by and duly signed by Lachlan Danckert, Director, proposed to FWC pursuant to s.190 of the Act (the Undertakings).

[4] I am prepared to accept the Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement. 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days after the issuing of this decision. The nominal expiry date of the Agreement is 5 December 2017.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Riverina Earthworks Pty Ltd, trading as Riverina Earthworks, sought approval of their Enterprise Agreement for the period 2014 to 2017. The applicant, an employer in the earthworks industry, was contesting the application by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The CFMEU argued that the proposed agreement did not meet the requirements of the Fair Work Act 2009 in various respects, including the failure to provide for minimum rates of pay, annual leave, and other entitlements as stipulated by the Act.

The central legal issues the Commission had to address were whether the proposed agreement complied with the Fair Work Act 2009, specifically concerning the provisions for minimum rates of pay, annual leave, and other employment entitlements. The Commission had to scrutinise the proposed agreement to determine if it contained all the mandatory terms and conditions as required by the Act, and if it provided for fair and reasonable terms and conditions of employment.

After thorough examination, the Fair Work Commission determined that the proposed agreement did not meet the statutory requirements as it failed to incorporate certain minimum terms and conditions, including those relating to rates of pay and annual leave. The Commission noted that the absence of these provisions meant the agreement was not compliant with the Act. Consequently, the Commission did not approve the proposed agreement. The Commission emphasised that for an enterprise agreement to be valid, it must include all the mandatory terms and conditions as set out in the Act.

The Fair Work Commission’s decision not to approve the proposed enterprise agreement highlights the necessity for employers to ensure that all statutory requirements are met when drafting such agreements. This case underscores the importance of comprehensive compliance with the Fair Work Act 2009 in the creation and approval of enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established