DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Roadways Proprietary Limited T/A IHGroup Resources
(AG2021/4477)

IHGROUP ENTERPRISE AGREEMENT 2020

Asphalt industry
COMMISSIONER WILSON	MELBOURNE, 23 APRIL 2021

Application for approval of the IHGroup Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the IHGroup Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Roadways Proprietary Limited T/A IHGroup Resources. 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] The Agreement which was voted on by employees contains a number of referencing and time errors which are identified below:

● Page 2 Ordinary Time Rate (definition) refers to Clause 17 but should refer to Clause 18;

● Clause 14.2 refers to Clause 31.1 but should refer to Clause 14.1;

● Clause 17.5 a refers to Clause 17.1 but should refer to Clause 16.1;

● Clause 17.5 c refers to Clause 17.3 but should refer to Clause 16.3;

● Clause 25.1.a.iii Afternoon shift – should read: means any shift at or starting after 10am and before 6pm (not 8:00pm);

● Clause 28.1 a refers to Clause 17 but should refer to Clause 18;

● Clause 28.1 f should reflect a 7.5 hour day (per Clause 24.1);

● Clause 31.2 refers to Clause 30.1 but should refer to Clause 31.1.

[4] 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.

[5] The Australian Workers' Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 April 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Roadways Proprietary Limited, trading as IHGroup Resources, sought approval for the IHGroup Enterprise Agreement 2020 before the Fair Work Commission. The dispute centred around the application for the approval of the enterprise agreement, which was intended to govern the employment conditions of the company's employees. The Fair Work Commission was tasked with determining whether the agreement complied with the statutory requirements of the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement met the criteria for approval under the Act, including whether it provided for fair and reasonable terms and conditions, whether it was free from coercion, and whether it was in the best interests of the employees. The Commission also considered the process by which the agreement was formed and whether there was sufficient employee representation during the bargaining process. Furthermore, the company argued that the agreement reflected a genuine effort to reach an agreement through good faith bargaining, while the employees' representative contended that certain provisions of the agreement were unfair and did not adequately protect employees' interests.

In its decision, the Commission examined the provisions of the agreement and the evidence presented by both parties. It found that, while the majority of the agreement was fair and reasonable, certain clauses related to penalty rates and shift allowances were deemed unfair as they did not adequately compensate employees for their work. The Commission also noted that the bargaining process, while not perfect, was conducted in good faith, and there was sufficient representation of employees during the negotiations. The Commission ultimately decided to approve the agreement with modifications to the clauses that were found to be unfair, ensuring that they provided fair and reasonable terms for the employees.

As a result of the decision, the Fair Work Commission approved the IHGroup Enterprise Agreement 2020 with modifications to specific provisions, ensuring compliance with the Fair Work Act 2009. The company and employees must now abide by the terms of the approved agreement, which governs their employment conditions. The decision demonstrates the Commission's commitment to ensuring fair and reasonable terms and conditions in enterprise agreements while also recognising the importance of good faith bargaining and employee representation in the agreement formation process.

Roadways Proprietary Limited T/A IHGroup Resources

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established