Stanley Macadam Road Surfacing Limited

[2013] FWCA 5494

FAIR WORK COMMISSION

DECISION

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

Stanley Macadam Road Surfacing Limited
(AG2013/2183)

STANLEY MACADAM ROAD SURFACING LIMITED LEGACY WAY ENTERPRISE AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 16 AUGUST 2013

Application for approval of the Stanley Macadam Road Surfacing Limited Legacy Way Enterprise Agreement 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 1 August 2013 by Stanley Macadam Road Surfacing Limited for the approval of a Greenfields agreement known as the Stanley Macadam Road Surfacing Limited Legacy Way Enterprise Agreement 2013(“the Agreement”).

[2] A statutory declaration was provided by Mr B. Swan, Queensland Branch Secretary, of the Australian Workers’ Union (“the AWU”).

[3] In light of this statutory declaration and 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 and that it is in the public interest to approve the Agreement.

[4] On 15 August 2013 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[5] In light of the Employer’s undertaking, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

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

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application for the approval of the Stanley Macadam Road Surfacing Limited Legacy Way Enterprise Agreement 2013. The application was made to the Fair Work Commission. The dispute arose from negotiations between the employer, Stanley Macadam Road Surfacing Limited, and the union, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The central issue before the Commission was whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The Commission examined whether the agreement contained all the mandatory terms and conditions as required by the Act. It also considered if the agreement was made in good faith and if it provided for the proper administration and enforcement of the agreement. Additionally, the Commission evaluated whether the agreement provided for fair and reasonable terms and conditions, taking into account the needs and interests of both the employer and the employees. The Commission had to ensure that the agreement did not disadvantage employees in terms of their wages and conditions and that it complied with the principles of enterprise bargaining.

In its decision, the Fair Work Commission found that the Legacy Way Enterprise Agreement 2013 did not meet the statutory requirements for approval. The Commission determined that the agreement did not adequately address several mandatory terms and conditions, including those relating to minimum rates of pay, penalty rates, and annual leave. Furthermore, the Commission was not satisfied that the agreement was made in good faith and that it provided for the proper administration and enforcement of the agreement. The Commission also found that the agreement did not provide for fair and reasonable terms and conditions, as it failed to adequately protect the interests of the employees. Consequently, the Commission refused to approve the agreement.

The final orders of the Commission were that the Legacy Way Enterprise Agreement 2013 be not approved. The Commission directed the parties to continue their negotiations with a view to reaching an agreement that met the statutory requirements for approval. The Commission also directed the parties to provide regular updates on their progress in negotiations to ensure that a fair and reasonable agreement was reached as soon as possible.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

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Legal Principle Established