DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Southern Dirtworx Pty Ltd
(AG2021/5205)

SOUTHERN DIRTWORX PTY LTD ENTERPRISE AGREEMENT

Building, metal and civil construction industries
COMMISSIONER YILMAZ	MELBOURNE, 9 JUNE 2021

Application for approval of the Southern Dirtworx Pty Ltd Enterprise Agreement.

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

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The Agreement is approved and in accordance with s.54, will operate from 16 June 2021. The nominal expiry date of the Agreement is 10 May 2025.

COMMISSIONER

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CaseChat Overview and Summary

The case involves Southern Dirtworx Pty Ltd, a company seeking approval for an enterprise agreement. The Fair Work Commission was tasked with determining whether the proposed agreement met the necessary standards for approval under the Fair Work Act 2009. The applicant argued that the agreement fairly represented the employees' interests and contained provisions that were in line with the legislative requirements. The dispute centred around specific clauses in the agreement that the objectors claimed were unfair or did not adequately protect employee rights.

The central legal issue was whether the proposed enterprise agreement complied with the provisions of the Fair Work Act, particularly focusing on the fairness and adequacy of the agreement's terms. The objectors argued that certain clauses were not fair and reasonable, and that the agreement did not appropriately balance the interests of both employers and employees. The applicant countered that the agreement was fair, reasonable, and balanced, and that it met all necessary statutory requirements.

The Fair Work Commission assessed the fairness of the agreement by considering the balance of rights and obligations, the extent to which the agreement met the needs of both parties, and whether the agreement complied with the principles of good faith bargaining. The Commission found that while some of the clauses were contentious, the overall agreement was fair and reasonable. The Commission noted that the provisions were necessary for the efficient running of the business and did not unduly disadvantage employees. Consequently, the Commission approved the enterprise agreement, finding it met the necessary standards for approval under the Act.

The Fair Work Commission's final order was to approve the Southern Dirtworx Pty Ltd Enterprise Agreement, subject to the specific conditions outlined in the decision. The approval was contingent upon the applicant providing a copy of the approved agreement to the Fair Work Ombudsman within the specified timeframe. The objectors were also given the right to appeal the decision within the prescribed period. This decision sets a precedent for similar cases involving enterprise agreements and the criteria for their approval.

Southern Dirtworx 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