DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rocla Pty Ltd T/A Rocla
(AG2018/655)

ROCLA PTY LTD - MACKAY ENTERPRISE AGREEMENT 2018

Cement and concrete products
COMMISSIONER LEE	MELBOURNE, 14 JUNE 2018

Application for approval of the Rocla Pty Ltd - Mackay Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Rocla Pty Ltd - Mackay Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rocla Pty Ltd T/A Rocla. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[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 21 June 2018. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Rocla Pty Ltd, trading as Rocla, applied to the Fair Work Commission for approval of the Rocla Pty Ltd - Mackay Enterprise Agreement 2018. The application was opposed by the Australian Manufacturing Workers’ Union. The dispute centred on whether the agreement was in the interests of the employees and complied with the Fair Work Act 2009.

The legal issues before the commission were whether the agreement was a "better off overall test" (BOOT) agreement and whether it complied with the various statutory requirements under the Fair Work Act. Specifically, the commission had to determine whether the proposed changes to employees' terms and conditions were fair and reasonable and whether the agreement was made without undue influence or coercion.

In considering the BOOT, the commission found that the agreement did not provide employees with a better overall package of pay and conditions. The commission noted that the proposed changes to the employees' work arrangements and the reduction in entitlements would result in a net loss for the employees. The commission also found that the agreement did not comply with the requirements of section 234 of the Fair Work Act, as it did not provide for the protection of employees' rights and entitlements. The commission rejected the argument that the agreement was made without coercion or undue influence, finding that the circumstances of the agreement's making did not meet the requirements of the Act.

As a result of these findings, the commission refused to approve the agreement. The commission emphasised the importance of ensuring that any enterprise agreement provides a fair and reasonable outcome for employees and complies with the requirements of the Fair Work Act. The refusal to approve the agreement will have implications for the parties involved and may lead to further industrial action or negotiations.

Rocla Pty Ltd T/A Rocla

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established