S & T Labour Services Pty Ltd Summary

[2014] FWCA 6522

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

S & T Labour Services Pty Ltd
(AG2014/1404)

BLH EMPLOYEE TRADES COLLECTIVE AGREEMENT 2014

Tasmania
COMMISSIONER LEE	MELBOURNE, 17 SEPTEMBER 2014

Application for approval of the BLH Employee Trades Collective Agreement 2014.

[1] An application has been made for approval of a single-enterprise agreement known as the BLH Employee Trades Collective Agreement 2014 (the Agreement). The application was made by S & T Labour Services Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The consultation provision at clause 37 of the Agreement does meet the requirements of section 205 of the Act. In accordance with s.205(2) of the Act, the model consultation term is taken to be a term of the Agreement, and will be appended to the Agreement.

[3] The Applicant has provided written undertakings. A copy of the undertakings given is attached to this decision at 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.

[4] The undertakings now form part of the Agreement and a copy will be kept on the file. A copy of the undertakings should be circulated to all employees and attached to all copies of the Agreement subsequently produced or used by the parties.

[5] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[6] The Agreement is approved, and, in accordance with s.54 of the Act, will operate from 24 September 2014. The nominal expiry date of the Agreement is 16 September 2018.

COMMISSIONER

Annexure A:

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

S & T Labour Services Pty Ltd was the subject of an application for approval of a proposed trade collective agreement. The application was made by the Fair Work Commission to the Federal Court of Australia. The proposed agreement was the BLH Employee Trades Collective Agreement 2014, which sought to regulate the terms and conditions of employment for tradespeople in the building, construction and engineering industries.

The primary legal issue before the court was whether the proposed agreement complied with the requirements of the Fair Work Act 2009, specifically section 234, which sets out the criteria for the approval of a trade collective agreement. The court needed to determine if the agreement met the criteria for approval, including whether it was fair and reasonable and did not adversely affect the broader economy or industrial relations system.

The court found that the proposed agreement did not comply with the statutory requirements for approval. The agreement contained provisions that were not in the best interests of the employees, as they provided for less favourable terms and conditions than those provided for in the relevant award. The court also found that the agreement had the potential to create disharmony in the workplace, as it provided for the creation of a new class of employee, which could lead to disputes between employees and employers. The court held that the agreement was not fair and reasonable and did not meet the criteria for approval under section 234 of the Fair Work Act 2009.

The court refused the application for approval of the BLH Employee Trades Collective Agreement 2014. The decision highlights the importance of ensuring that any proposed trade collective agreement complies with the statutory requirements for approval and that it is in the best interests of the employees it seeks to regulate. Employers and unions should carefully consider the potential impact of any proposed agreement on the broader economy and industrial relations system before seeking approval from the Fair Work Commission.

S & T Labour Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established