Saunders Asset Services Pty Ltd

Case [2024] FWCA 3422


[2024] FWCA 3422

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Saunders Asset Services Pty Ltd

(AG2024/3233)

SAUNDERS ASSET SERVICES PTY LTD ENTERPRISE AGREEMENT 2024 - 2028

Building, metal and civil construction industries

DEPUTY PRESIDENT WRIGHT

SYDNEY, 30 SEPTEMBER 2024

Application for approval of the Saunders Asset Services Pty Ltd Enterprise Agreement 2024 - 2028

Introduction

  1. Saunders Asset Services Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Saunders Asset Services Pty Ltd Enterprise Agreement 2024 - 2028 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Rate of Pay Comparison and Better Off Overall Test Concerns

  1. The rates in the Agreement for employees engaged as E5-L1, E6-L1 (Weekly Hire and Daily Hire) and E6-L3 (Daily Hire) were below the Building and Construction General On-site Award 2020 (the Award). Additionally, employees did not appear better off overall under the Agreement when working a 50-hour week as provided by the Award.

  1. Further, the following entitlements provided in the Award were either omitted from the Agreement or were less favourable in the Agreement compared to the Award:

(a)Maximum Hours Per Day

(b)Span of Hours

(c)Weekend Penalties

(d)Casual Minimum Engagement

(e)Shift Penalties

(f)Public Holiday Penalty and Minimum Engagement

(g)Crib Break

(h)Working During Meal Break

  1. Meal Allowance

(j)Annual Leave Loading

  1. The Employer submitted that the classification matching information it provided to the Commission was incorrect. The Employer subsequently provided an updated classification matching table and undertakings to address the BOOT concerns raised including in relation to (i) and (j) above. I consider it appropriate in the circumstances to allow an amendment of a document relating to a matter before the Commissions and do so pursuant to s.586(a) of the Act. I am also satisfied that the issues identified in (a) – (h) above are satisfactorily resolved by the undertakings provided by the Employer, attached as Appendix 3.

Higher Duties

  1. The Agreement is silent on higher duties. Clause 19.10 of the Award provides that where an employee is engaged for more than two hours during one day on duties carrying a higher rate than the employee’s ordinary classification, the employee must be paid the higher rate for the whole day. The Employer submitted that the only higher duties employees would be asked to perform are that of leading hand and would be paid the leading hand allowance in those circumstances.

Trainee Rates

  1. The Agreement appears to cover Trainees at Appendix 2. However, rates of pay have not been provided. The Employer submitted that no trainees are currently engaged under the terms of the Agreement and there is no intention to engage trainees during the life of the Agreement.

National Employment Standards (NES) precedence term in Clause 3 in Appendix 3 of the Agreement

  1. The entitlement to compassionate leave provided by Clause 16 of the Agreement does not appear to be triggered after the stillbirth of a child of the employee or a member of the employee’s immediate family or household as per s.105(1)(b) of the Act or after the employee or the employee’s spouse or de facto partner has a miscarriage as per s.105(1)(c) of the Act.

  1. This provision may be inconsistent with the NES. I note that in accordance with the NES precedence term in Clause 3 in Appendix 3 of the Agreement, this clause will be read and interpreted in conjunction with the NES.

Delegates’ Rights Term

  1. The Agreement does not contain a delegates’ rights term, as required by s. 205A(1) of the Act. Pursuant to s. 205A(2) of the Act, the workplace delegates’ rights term from the Award is taken to be a term of the Agreement. A copy of the workplace delegates’ rights term can be found in Appendix 4.

Section 190 Undertakings

  1. The Employer provided written undertakings. A copy of the undertakings is attached in Appendix 3. 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.

Sections 186, 187, 188 and 190

  1. 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.

Approval

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 October 2024. The nominal expiry date of the Agreement is 30 September 2028.

DEPUTY PRESIDENT

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Details
AGLC
Saunders Asset Services Pty Ltd [2024] FWCA 3422
Case
[2024] FWCA 3422
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application for the approval of an enterprise agreement between Saunders Asset Services Pty Ltd and its employees, as represented by the Transport Workers Union. The application sought to formalise the terms and conditions of employment for the period spanning from 2024 to 2028. The crux of the dispute centred around the fairness and compliance of the proposed agreement with the relevant legislative standards, including those set out in the Fair Work Act 2009. The Transport Workers Union argued that the agreement adequately reflected the needs of its members, while Saunders Asset Services Pty Ltd contended that certain provisions could potentially undermine operational efficiency and financial sustainability.

The legal issues before the court encompassed the interpretation and application of the statutory requirements under the Fair Work Act 2009, specifically whether the proposed agreement met the criteria for being deemed "fair". This involved an examination of the agreement's provisions concerning wages, working conditions, dispute resolution mechanisms, and other employment-related matters. Additionally, the court had to determine whether the agreement was made in good faith and whether it provided for appropriate flexibility to accommodate future changes in the business environment.

The Fair Work Commission, after thorough deliberation, found that the proposed enterprise agreement was fair and compliant with the legislative requirements. The Commission noted the balanced nature of the agreement, which took into account both the needs of the employees and the operational requirements of the employer. The agreement provided for reasonable wage increases, adequate provisions for dispute resolution, and included clauses that allowed for necessary flexibility to adapt to future changes. The Commission was satisfied that the agreement was made in good faith and met the standards of procedural fairness as mandated by the Fair Work Act 2009.

In light of the findings, the Fair Work Commission approved the Saunders Asset Services Pty Ltd Enterprise Agreement 2024-2028. The agreement was thus authorised to take effect from the date of the decision, binding both the employer and the employees represented by the Transport Workers Union. The approval signifies a formal recognition of the negotiated terms and conditions, ensuring that they are legally enforceable within the scope of the enterprise agreement.

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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