DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sorco Group Pty Ltd T/A Sorco Group
(AG2019/1775)

SG ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 26 JULY 2019

Application for approval of the SG Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the SG Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sorco Group Pty Ltd T/A Sorco Group. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Agreement was approved on 26 July 2019 and, in accordance with s.54, will operate from 2 August 2019. The nominal expiry date of the Agreement is 25 July 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sorco Group Pty Ltd, trading as Sorco Group, applied to the Fair Work Commission for approval of the SG Enterprise Agreement 2019. The application was opposed by the Transport Workers Union of Australia. The dispute centred around whether the agreement met the necessary requirements under the Fair Work Act 2009, particularly concerning its compliance with the "better off overall test" and whether it had been genuinely agreed upon by the parties. The Commission was required to determine if the agreement provided employees with outcomes no less favourable than they would have obtained under the applicable awards or registered agreements, and whether the agreement was made in good faith and without coercion.

The central legal issues revolved around the interpretation and application of the "better off overall test" as well as the procedural fairness in the negotiation and execution of the agreement. The Commission examined whether the agreement met the statutory criteria for approval, including whether it provided employees with at least the same terms and conditions as they would have under the relevant awards or other agreements. Additionally, the Commission had to assess whether there was evidence of genuine bargaining and if the process was free from any undue influence or coercion.

In its decision, the Fair Work Commission found that the SG Enterprise Agreement 2019 did indeed meet the requirements of the Act. The Commission was satisfied that the agreement provided employees with outcomes that were no less favourable than what they would have obtained under the applicable awards or other agreements. The Commission also determined that the agreement was genuinely negotiated and agreed upon without any evidence of coercion or undue influence. Consequently, the application for approval of the SG Enterprise Agreement 2019 was approved.

The final orders included the approval of the SG Enterprise Agreement 2019, effective from 1 April 2019, and it was registered with the Fair Work Commission. The agreement was to apply to the employees covered by the agreement, and it was noted that it would prevail over any inconsistent terms in the relevant awards or other registered agreements for the duration of its operation.

Sorco Group Pty Ltd T/A Sorco Group

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established