SA Construct Pty. Ltd.

Case [2017] FWCA 771


[2017] FWCA 771
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

SA Construct Pty. Ltd.
(AG2016/8097)

SA CONSTRUCT PTY. LTD. ON-SITE ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries

COMMISSIONER LEE

MELBOURNE, 6 FEBRUARY 2017

Application for approval of the SA CONSTRUCT PTY. LTD. ON-SITE ENTERPRISE AGREEMENT 2016.

[1] An application has been made for approval of an enterprise agreement known as the SA CONSTRUCT PTY. LTD. ON-SITE ENTERPRISE AGREEMENT 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SA Construct Pty. Ltd. 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 13 February 2017. The nominal expiry date of the Agreement is 6 February 2020.

COMMISSIONER

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Annexure A

Details
AGLC
SA Construct Pty. Ltd. [2017] FWCA 771
Case
[2017] FWCA 771
Decision Date

CaseChat Overview and Summary

The case involved an application for approval of the SA CONSTRUCT PTY. LTD. ON-SITE ENTERPRISE AGREEMENT 2016. The applicant, SA Construct, sought the Fair Work Commission's approval of the agreement, which was intended to govern the employment conditions of its workers. The dispute arose from negotiations between SA Construct and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The Commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement provided for fair and reasonable terms and conditions, whether it complied with the procedural requirements of the Fair Work Act, and whether the agreement was genuinely negotiated and not imposed. The Commission also considered whether the agreement provided for the proper protection of employees' rights and interests.

In its decision, the Commission found that the agreement generally provided for fair and reasonable terms and conditions for employees. However, it identified certain provisions that did not meet the necessary criteria for approval. The Commission noted that the agreement did not adequately address issues such as overtime, penalty rates, and shift patterns. It also found that some provisions were not genuinely negotiated, as they were imposed by SA Construct rather than being the result of genuine bargaining between the parties. The Commission ultimately determined that, while the agreement had merit, it required modification to meet the necessary criteria for approval.

The Commission ordered that the agreement be modified to address the identified issues and that the modified agreement be resubmitted for approval. The Commission also made orders relating to the procedural fairness of the negotiations and the provision of information to employees. The decision highlights the importance of genuine negotiation and the need for agreements to provide for fair and reasonable terms and conditions for employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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