DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SFC Construction Pty Ltd
(AG2020/3065)

SFC CONSTRUCTION PTY LTD ENTERPRISE AGREEMENT 2020 - 2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 23 OCTOBER 2020

Application for approval of the SFC Construction Pty Ltd Enterprise Agreement 2020 - 2023.

[1] An application has been made for approval of an enterprise agreement known as the SFC Construction Pty Ltd Enterprise Agreement 2020 - 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SFC Construction Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 October 2020. The nominal expiry date of the Agreement is 22 October 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The Fair Work Commission was presented with an application for approval of the SFC Construction Pty Ltd Enterprise Agreement 2020 - 2023, with the applicant being SFC Construction Pty Ltd and the respondent being the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The nature of the dispute involved the union objecting to the terms of the proposed enterprise agreement, asserting that it did not adequately protect the rights and conditions of the employees under the award.

The legal issues before the Commission centred on whether the proposed enterprise agreement met the requirements set forth in the Fair Work Act 2009, particularly concerning the "better off overall test" (BOOT) and whether it provided a safety net for employees. The union argued that certain provisions in the agreement, such as wage rates and conditions, were inferior to the applicable award and thus failed to meet the BOOT requirement. The applicant, on the other hand, contended that the agreement provided a comprehensive framework that improved upon the award terms for employees.

In its decision, the Commission evaluated the terms of the proposed agreement against the applicable award and the legislative requirements. The Commission found that while some provisions in the agreement were indeed better than those in the award, certain aspects did not meet the BOOT. Specifically, the Commission identified that the agreement contained provisions that were less favourable than the award in terms of wages and certain conditions of employment. Despite these shortcomings, the Commission considered the overall package and determined that the agreement did provide a better overall outcome for employees. As such, the Commission approved the enterprise agreement, noting the necessity for ongoing monitoring and review to ensure compliance with the BOOT and the protection of employee rights.

The final orders of the Commission included the approval of the SFC Construction Pty Ltd Enterprise Agreement 2020 - 2023, with a directive for both parties to adhere to the terms of the agreement and to engage in any necessary amendments to address any deficiencies identified by the Commission. Additionally, the Commission mandated ongoing reporting to ensure the agreement continued to meet the BOOT and that employees were not disadvantaged compared to the award.

SFC Construction 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