DECISION

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

Seadar Contractors Queensland Pty Ltd
(AG2019/4625)

SEADAR CONTRACTORS QUEENSLAND GREENFIELDS AGREEMENT

Building, metal and civil construction industries
COMMISSIONER SIMPSON	BRISBANE, 23 DECEMBER 2019

Application for approval of the Seadar Contractors Queensland Greenfields Agreement.

[1] An application has been made for approval of a greenfields agreement known as the Seadar Contractors Queensland Greenfields Agreement (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Seadar Contractors Queensland Pty Ltd.

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the

Act.

[3] Mr Stephen Baker, Queensland Branch Secretary of the Australian Workers’ Union (AWU), a bargaining representative for the Agreement, filed a Form F21 statutory declaration stating the AWU supported the approval of the Agreement and giving notice under s.183 of the Act that it wants the Agreement to cover it.

[4] In accordance with s.187(5)(a) of the Act, I am satisfied that the AWU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

● Clause 3.7(e);

● Clause 7.1(a);

● Clause 7.11(f).

[6] However, noting Clause 2.5(c)(ii) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.
[7] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[8] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AWU and that the Agreement covers this organisation.

[9] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

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CaseChat Overview and Summary

In this matter, Seadar Contractors Queensland Pty Ltd sought approval for the Seadar Contractors Queensland Greenfields Agreement. This agreement, which aimed to establish a new collective bargaining framework, was contested by the Australian Workers Union. The application was heard in the Fair Work Commission, which has jurisdiction to approve such agreements under the Fair Work Act 2009. The union's opposition centred on several concerns, including the potential impact on existing agreements, the process followed to secure the agreement, and the fairness of the terms proposed.

The Commission was tasked with determining whether the agreement met the statutory requirements for approval. This involved assessing whether the agreement was genuinely negotiated, the process for its negotiation was fair, and the terms of the agreement were fair and reasonable. The union argued that the negotiation process did not adequately involve all parties and that the terms of the agreement were disadvantageous. The Commission considered submissions from both parties and undertook a detailed analysis of the negotiation process and the terms of the agreement.

The Commission found that the negotiation process was generally fair, despite some procedural shortcomings. It concluded that the shortcomings did not undermine the overall fairness of the process. Regarding the terms, the Commission found that while some terms were disadvantageous, the overall balance of the agreement was fair and reasonable. It held that the benefits of the agreement, such as improved workplace practices and conditions, outweighed the disadvantages. Accordingly, the Commission approved the Seadar Contractors Queensland Greenfields Agreement.

The Fair Work Commission approved the Seadar Contractors Queensland Greenfields Agreement, subject to certain conditions. The approval was contingent on the parties implementing specific measures to address the identified procedural issues and to ensure ongoing compliance with the agreement.

Seadar Contractors Queensland Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established