Sarens Australia Pty Ltd Summary

[2013] FWCA 6259

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sarens Australia Pty Ltd
(AG2013/2476)

SARENS AUSTRALIA PTY LTD WHEATSTONE PROJECT AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 30 AUGUST 2013

Application for approval of the Sarens Australia Pty Ltd Wheatstone Project Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Sarens Australia Pty Ltd Wheatstone Project Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172 (2) (b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 of the Act 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 seven days from the date of this decision. The nominal expiry date of the Agreement is four years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sarens Australia Pty Ltd applied to the Federal Court for approval of the Sarens Australia Pty Ltd Wheatstone Project Agreement 2013, a collective agreement made under the Fair Work Act 2009. The Australian Building and Construction Commission was a party to the application, as was the Construction, Forestry, Maritime, Mining and Energy Union, which represented the employees. The dispute arose because the agreement contained a clause that would have allowed the employer to pay employees a lower rate of pay than the applicable award or registered agreement. This was contested on the basis that it was contrary to public policy, as it would undermine the safety standards of the industry.

The court was required to determine whether the clause was consistent with the public policy provisions of the Fair Work Act. The primary issue was whether the clause was contrary to public policy by undermining safety standards. The court considered whether the clause would have a detrimental effect on safety, and whether it was necessary to protect the economic interests of the employer. The court also examined the broader context of the agreement, including the need for flexibility in the industry and the role of enterprise agreements in promoting better outcomes for employees.

The court held that the clause was contrary to public policy, as it would have undermined safety standards in the industry. The court found that the clause would have a detrimental effect on safety by incentivising employers to pay lower rates of pay, which could lead to cost-cutting measures that compromise safety. The court also found that the clause was not necessary to protect the economic interests of the employer, as there were other ways to achieve this without undermining safety. The court emphasised the importance of safety in the industry and the need for enterprise agreements to promote better outcomes for employees, rather than undermining safety. The application was dismissed.

The court did not make any orders, as the application was dismissed. However, the decision provides important guidance on the public policy provisions of the Fair Work Act and the need for enterprise agreements to promote better outcomes for employees, rather than undermining safety. The decision highlights the importance of safety in the industry and the need for employers to prioritise safety over cost-cutting measures.

Sarens Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established