Saunders International Pty Ltd

[2013] FWCA 5843 Note: An appeal pursuant to s.604 (C2013/5766) was lodged against this decision - refer to Full Bench decision dated 10 September 2013 for result of appeal.

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Saunders International Pty Ltd
(AG2013/7936)

SAUNDERS INTERNATIONAL BALLAN RD. RESERVOIR ON-SITE CONSTRUCTION EMPLOYEE COLLECTIVE AGREEMENT 2013-2014

Building, metal and civil construction industries
COMMISSIONER MACDONALD	SYDNEY, 20 AUGUST 2013

Application for approval of the Saunders International Ballan Rd. Reservoir On-Site Construction Employee Collective Agreement 2013-2014.

[1] An application has been made for approval of an enterprise agreement known as the Saunders International Ballan Rd. Reservoir On-Site Construction Employee Collective Agreement 2013-2014 (“the Agreement”). The application was made pursuant to s.185 of the Fair Work Act 2009 (“the Act”). The application has been made by Saunders International Limited (“the applicant”). The Agreement is a single-enterprise agreement.

[2] I am satisfied each of the requirements of ss.186, 187 and 188 relevant to this application for approval has been met.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days after the issuing of this decision. The nominal expiry date is 31 October 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Saunders International Pty Ltd and its employees, represented by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute centred on the approval of the Saunders International Ballan Rd. Reservoir On-Site Construction Employee Collective Agreement 2013-2014. The employees sought the Commission's approval of the agreement, which outlined terms and conditions of employment for the construction of the Ballan Road Reservoir.

The primary legal issue for the Commission was whether the proposed agreement was a "direct substitution" of a previous agreement. Under the Fair Work Act 2009, a new agreement cannot be directly substituted for an existing one without the agreement of the employer or the consent of the Commission. The Commission needed to determine if the new agreement constituted a direct substitution and, if so, whether it met the criteria for approval under the Act.

The Commission examined the terms of the previous and proposed agreements, noting differences in provisions related to employment conditions, pay rates, and working hours. The new agreement included changes such as a reduction in the number of employees covered and adjustments to shift patterns and overtime provisions. The Commission concluded that the changes did not amount to a direct substitution, as the new agreement introduced significant modifications that went beyond mere re-wording or minor adjustments. Consequently, the Commission found that the new agreement could be approved as it did not directly substitute the existing agreement but introduced substantial changes that warranted separate consideration.

Following its findings, the Commission approved the Saunders International Ballan Rd. Reservoir On-Site Construction Employee Collective Agreement 2013-2014, recognising the changes as significant and not amounting to a direct substitution. The decision was based on the specific terms of the agreement and the substantial modifications it introduced, which were deemed to be in the best interests of the employees and the employer.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established